rebuild trust

Banks & SMEs: “Rebuild Trust” to Boost Lending

Banks & SMEs: “Rebuild Trust” to Boost Lending

Small firms requiring bank finance need to rebuild trust with their bank managers and demonstrate that they are viable to lend to, the Federation of Small Businesses (FSB) has urged. The call comes after an FSB survey of 1,400 small firms highlighted that bank lending to small businesses remains low ― only 18% approached banks for new credit in the first two months of 2010. Of these, just 50% of applications were successful. “There needs to be more openness and dialogue between banks and small firms,” said FSB spokeswoman, Sara Lee. “The banks need to show fair lending criteria and fair rates so businesses know they can approach them. Small businesses, too, need to speak to their bank managers and start to rebuild trust. They need to try to re-establish a relationsh... »