'Banks do not understand small businesses' needs'

03/08/2010

Banks are failing to help small businesses, according to a Burton-based commerce chief.

National policy chairman of the Federation of Small Businesses, Mike Cherry, believes the failing of banks is clear at branch level, Burton Mail reported.

Mr Cherry said banks have not got the balance right yet although in some cases they are being supportive.

He added: "What I would be calling for is that where a business has a viable and sustainable plan and can meet the repayments then they should be allowed to have the necessary borrowing to support that."

Mr Cherry believes there is a danger, particularly next year when a large amount of refinancing is needed, that small and medium-sized businesses would be held back by a lack of access to working capital.

The chairman's comments follow chancellor George Osborne's statement that the government will not tolerate banks putting pressure on small businesses struggling for credit.

Posted by Nicola Richards