Big banks 'lack common sense'

Date: 25th October 2011

Small businesses around the UK are seeing their growth ambitions blocked by a lack of common sense from the country's leading banks.

That is according to Owen Woodley, chief executive officer of the newly-created Shawbrook Bank, who said small firms believe large banks are making it difficult for them to borrow.

Indeed, research published by the new bank revealed that 89 per cent of smaller businesses believe large banks fail to use common sense when deciding on loan applications.

A further 45 per cent cited high levels of bureaucracy as the main obstacle to funding and just six per cent believe bank processes to be clear and transparent.

Mr Woodley commented: "At a time when smaller enterprises should be given all the help they need to grow and succeed, it's worrying that so many feel they are up against a loan application system that is unclear and obstructive.

"Having access to the right finance at the right time is vital for an expanding small business - and so is having a straightforward and efficient lending process."

Shawbrook recently announced that it intends to lend £250 million to small businesses in 2012.

Posted by Jacob Williams