Bank

Small Businesses Granted Over £40m in Bank Loans via Appeals

Report reveals Appeals Process helped revoke over a third of rejected small business loans Over the last three years, small businesses have received a total of £41.7m through the independent business loans appeal process, it was announced this week. The report, conducted by independent external reviewer Professor Russell Griggs OBE, showed that a total of 3,518 appeals were made this year, rising from 3,311 last year and resulting in £13.1m of lending going into the small business community in 2014. Over the three years that Griggs has been reviewing the process, there has been 9,006 small business loan appeals processed and 3,274 of these were reapproved (36.4%). The report also highlighted the main reasons why businesses were declined loans; failed credit score is the highest at 43%, fol... »

Government to Force Banks to Forward Small Businesses to Alternative Finance Providers

George Osborne and Vince Cable are preparing to push through legislation that will force high-street banks to automatically send small businesses rejected for loans to alternative funding companies. According to the Telegraph the legislation, which is to be included in the Queen’s speech on June 4, is designed to change the bank’s dominant position in small business lending and boost the role of alternative finance, such as crowdfunding and peer-to-peer lending. Osborne made it clear in his 2014 budget speech that small and mid-sized businesses will play a vital role in the economy’s future and the treasury feel that banks’ dominance is having a negative effect on the growth of this sector. According to the Telegraph the chancellor and other key government members are determined to passing... »