Businesses urge banks to 'make decisions locally'

Date: 6th March 2009

Businesses have called on banks to hand decision-making powers to local branches in a bid to increase corporate lending.

Research by the Federation of Small Businesses (FSB) found that 54 per cent of firms - including limited companies and partnerships - prefer to communicate with lenders in person, rather than via post, telephone or online.

National chairman of the FSB, John Wright, commented: "Branch managers still seem unaware or unwilling to promote funds such as the Enterprise Finance Guarantee.

"Businesses are complaining of unrealistic terms on finance applications and that they are not able to speak directly to those making decisions on their credit issues."

He added that with as many as 120 businesses going under every day, company owners "do not have the time" to contact call centres or wait for mailed correspondence.

Figures published by the British Bankers' Association earlier this week showed small business lending increased to £54.2 billion in January.