Small and medium-sized enterprises (SMEs) are being encouraged by the banks to have the confidence to apply for finance to help them grow.
While many news stories in recent times have focused on an apparent lack of desire of major lenders to allow SMEs to borrow money, the British Bankers’ Association (BBA) has now launched a year-long campaign to raise awareness among business owners that should have more faith that their loan application would be approved.
The message comes following research conducted by the BBA, which found that just over a third (37 per cent) of firms planning to apply for finance actually believed they would be successful.
BBA chief executive Anthony Browne said: “We’ve launched this campaign to let businesses know that they are a lot more likely to get finance than they think.”
Mr Browne added that the UK economy’s recovery would be much stronger if SMEs had the confidence to approach their banks without fear of being knocked back.
“Successful loan applications mean more orders for equipment, more new jobs and more plans to expand,” he explained.
The BBA further supported its claims by revealing that over two-thirds (67 per cent) of applicants were successful in their attempts to secure financial support.
However, despite this, the study identified 270,000 companies that were looking to expand, but had been put off because they did not think they were likely to have their case for a loan approved by their bank.
The campaign will also look to raise awareness of the Independent Appeals Process, which aims to overturn the decision to reject certain loan applications.
External reviewer of the Appeals Process professor Russel Griggs said that this system has managed to reverse 37 per cent of some 8,000 cases – worth nearly £40 million in total to SMEs looking to grow.
Posted by the Secret Businessman