small business banking

Small Business Banking to Become More Expensive?

A report published by invoice finance provider Venture Finance has suggested that small business banking may have to become more expensive in order for SMEs to better access finance. The white paper, Financing Britain’s Growth (PDF), drawn up in conjunction with the Department for Business, Innovation & Skills (BIS), KPMG, the British Business Angels Association (BBAA) and a number of successful SMEs, suggests that reliability of funding is the key to encouraging small business to find increased confidence and stimulate demand for business lending. Speaking to The Telegraph, Managing Director of Venture Finance, Peter Ewan, cited the banks attempts to cut prices prior to the financial crisis resulted in a drop in service quality: “I hope pricing is increased, allowing finan... »

Small Business Banking Steady in September

According to figures just released by the BBA (British Banking Association) small business lending continues to be relatively healthy. According to their latest report Small Business Support – September figures There are an estimated 540,000 term loans (out of some 3.9 million small business banking relationships) which have a total outstanding value of over £45.3bn. The BBA’s statistics director, David Dooks, speaking about the latest data, said: “September’s gross lending of £564m was on a par with September 2009 and reflected more than 10,000 new small business loans being granted in the month. However, the primary banking relationship for small businesses remains focused around operating current and savings accounts, where some 50,000 new relationships are established... »

Small Business Banking: The End of the Relationship Manager?

The role of relationship managers across Europe comes into question today with the release of the fourth annual Efma – Finalta report on Small Business Banking in Europe – Small Business Banking: The End of the Relationship Manager?. In the budget constrained environment of 2010, the report challenges the costly provision of the small business relationship manager (RM) and asks is there a need for this role? The report outlines strong reasons why banks should critically review how they are using small business relationship managers and whether real value is being generated. Approximately 50% of small business customers are relationship managed across Europe. Finalta looked at RM time-spend and believes too much time is spent disguising poor lending processes and other business ... »

Small Business Banking

Lloyds TSB & HBOS to help Small Firms

As recent problems with credit have seen numerous UK small firms "hard done" by the banks, today LLoyds TSB and Halifax Bank of Scotland (HBOS) have announced pacakages to help small business. The two banks, which are in the process of merging, announced their plans ahead of the Queen’s Speech today (Wednesday) which is expected to include a new statutory code of conduct for bank lending. Lloyds TSB has introduced a 6-point charter to include a promise to pass on interest rate cuts to business clients with an annual turnover of less than £1M and agreeing any reasonable request for short-term financing. Bank of Scotland (the BoS part of HBOS) is seeking £250m worth of funding from the European Investment Bank so that it can lend to small business at discounted ra... »

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