Partner Article

Region’s businesses paying more to borrow

THE REGION’S business leaders have said new figures that show a rise in SMEs bank fees are “worrying”.

The Institute of Chartered Accountants in England and Wales (ICAEW) has said many small businesses are unable to borrow from banks, because their lending criteria are too restrictive.

Meanwhile, the annual survey from the National Association of Commercial Finance Brokers (NACFB) reveals that in the mid-2000s, nearly £20bn was being borrowed, but this went down to under £7bn and is now just over that.

In reaction to the findings, David Longstaff, North East regional organiser for the FSB, said: “Access to finance and practical credit streams is something that small and micro businesses have been crying out for yet lending continues to be restrictive, bureaucratic and difficult to access for the business community and banks must realised that a more flexible and engaging approach needs to be taken.”

“We hope that the credit taskforce that has recently been set up will open up a new dialogue between small and micro businesses and banks in which trust can be restored and issues such as this can be resolved. To overcome the current impasse the credit taskforce discussions must be open, honest and not just a PR exercise.”

Last week, the government set up a task force involving the major banks and key government departments to examine whether banks are making life too tough for SMEs.

This was posted in Bdaily's Members' News section by Ruth Mitchell .