MP Barclay backs new appeals process allowing small and medium businesses to challenge lending decisions of big banks
- Credit: Archant
A NEW appeals process has been introduced giving small and medium sized businesses the power to challenge lending decisions by the five major banks.
The new rules mean businesses who have been declined business loans from RBS, Lloyds, HSBC, Barclays, Santander and a host of smaller lenders can appeal for their application to be reviewed by a member of staff independent of the original decision making process.
Since the appeals process was first established, more than 40 per cent of decisions to refuse lending have been overturned.
MP Steve Barclay urges Fenland’s small and medium sized businesses to take advantage of the new appeals process.
He said: “The fact that 40 per cent of appeals are being approved is clearly good news for local businesses.
“However, with access to finance tightened, I would like to encourage small and medium sized businesses to state their case for funding and appeal decisions from banks when they do not feel a refusal is justified.
“Freeing up flexible financing for entrepreneurs in places such as Wisbech and Chatteris is a vital part of the programme for regeneration in these areas; now small business owners should not feel intimidated by decisions made by the big banks.
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“This process ensures fairness in funding decisions and should give a boost to those who have a bright business idea but who might have been afraid to apply for financing.”
Businesses can appeal directly via the programme website at www.betterbusinessfinance.co.uk/help-support/appeal-process or find information and advice in their local branches of participating banks.