When the banks claimed that they are lending plenty of cash to small businesses, the new Business Secretary, Vince Cable suggested that their assertions were ‘misleading’. He also said, ‘All the evidence from business; the Institute of Directors and other bodies, clearly reveals banks are not lending as much as is needed.’ Cable went on to say,” forcing the banks to change their practices would be a key test of the coalition.”
So how does Mr Cable plan to persuade the banks to lend more? The Treasury and the Business Department is launching a consultation this week to discuss whether or not it’s a good idea to impose lending targets on the semi-nationalised banks, but Vince Cable reckons that this doesn’t go far enough. Instead he has called for ‘mandatory action’ to force Lloyds and RBS to lend. It will be an interesting battle of wills
We would be very interested to hear from small companies that have struggled to obtain bank funding for new projects or business expansion.
Tags: Business, Credit, Economy, Government, Loans, Small Business
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We set up this blog because our job at Riskdisk is to do everything we can
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Bank are not leanding more in our experience indeed they are making it very difficult to maintain existing facilities sometimes using less than ethical tactics and this is especially true of RBS . When offers are made the conditions set out are often unachievable.
Service has been shocking as well