Small firms to grill banking bosses

Senior North East bankers are to be grilled by over 50 business owners later this week as the region’s small businesses community steps up its fight to secure more lending from the banks.

The meeting organised by the Federation of Small Businesses (FSB) comes as small business owners express anger at what they say is a lack of support by the region’s lenders.

One North East businessman claims he was asked to stump up security of over £200,000 to borrow £100,000 from his bank and claims he would have to wait over six weeks for the bank to draw up a letter of credit for £20,000 (see panel).

Representatives from most of the region’s high street lenders have agreed to attend the meeting where the FSB will press for “lasting commitments” on lending.

However the region’s banks say they are in the market, and open for business, with one saying it is currently approving 85% of credit applications.

Simon Hanson, FSB North East policy manager, said: “Small businesses will lead the North East economy from downturn to recovery but the banks must do more to help small businesses survive in the current climate and improve the confidence in the economy to achieve this.

“Our members are still reporting problems getting access to credit and finance despite the massive Government stimulus programme and the quantitative easing programme undertaken by the Bank of England.

“We are meeting with the banks to help raise the concerns that small businesses have and understand how more can access finance to help them survive, grow and prosper.

“We will be looking for some lasting commitments from the banks to help take this forward and improve the relationship between small businesses and the banks.”

Regional representatives from Barclays, The Lloyds Banking Group, HSBC and the Royal Bank of Scotland have agreed to attend the meeting this Thursday at the Riverside Ground, Chester-le-Street from 5.30pm to 7.30pm.

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