Small Firms Not Happy With Banks And Business Loans
During the credit crunch and particularly in the aftermath of the recent recession, the Government in the UK has been placing pressure on the main high street banks, particularly those which have been privatised through government loans, to support small and medium sized businesses with banking facilities and particularly by offering business loans.
Despite this additional pressure on the banks, a new survey amongst small businesses has found that more than a quarter of all businesses are not happy with the service they have received from their bank over the course of the past twelve months.
The survey, conducted by the Federation of Small Businesses, found that 25 per cent of small companies were not happy with the way they were treat by their bank, with the biggest complaint being their inability to be accepted for a new business loan, or other finance.
Although 25 per cent may not sound like a huge proportion, when this is taken across the number of small businesses in the UK, it equates to somewhere in the region of 1.2 million companies which are not satisfied with their current bank.
Other reasons for dissatisfaction with banks include a lack of consistency from their bank business account manager, with many companies having their manager changed on regular occasions, with some even having up to three managers within the space of two years.
The other main complaint is that of a lack of access to a local branch, as many banks continue to close local branches, making it more difficult for business owners to get to a branch when they need to.
The Federation for Small Businesses has called on the introduction of a Post Bank for businesses, which utilises the facilities offered by the Post office network and could provide a local service and banking facilities, including business loans, for small businesses.
