Banks and Businesses Working Together

Statement of Principles — Banks and Businesses Working Together

Banks commit to support small businesses

The British Bankers’ Association (BBA) has revised its guidelines on bank lending to help small firms access the funds they need to survive the recession. The rewritten Statement of Principles sets out guidelines which must be implemented by all UK banks that comply with the Business Banking Code. The guidelines for the banks include contacting firms they believe are in trouble, offering to discuss all concerns in person, using their business assets to secure debt before considering personal assets, and helping customers to revise their business plans and forecasts. Stephen Alambritis, Federation of Small Businesses (FSB) head of parliamentary affairs said: “Small firms should see the benefits of these guidelines in the new year. However, the evidence that we have had from busi... »