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A business support group is urging firms to take part in an online survey to
highlight their experiences of dealing with banks.
The Forum of Private Business is hosting the questionnaire on behalf of the OFT
in an effort to find out how business owners are being treated by the major
lenders.
The move comes after new figures from the BBA, which show bank lending to
businesses fell again last month, placed fresh scrutiny on the relationships
between banks and smaller companies.
The Forum hopes as many small firms as possible will take part in the online
survey in order to provide the OFT with clear evidence of bank-related problems
and difficulties facing business owners.
The Forum’s research manager, Thomas Parry, explained: “The issue of the way
banks treat small firms has received an enormous amount of attention recently
and sparked a lot of debate.
“One the one hand, groups like the Forum have been arguing that viable smaller
firms are being unjustifiably denied credit, or offered it at an extortionate
cost, by risk-averse banks which often don’t understand their needs.
“On the other hand, the banks and their industry groups have claimed that
lending is down simply because demand is down and they are doing everything they
can to increase the flow of finance to business.
"There is also a wider debate about competition between banks, with some critics
arguing that smaller firms, particularly in Scotland, face a limited amount of
choice in the marketplace.
“We hope this survey will provide the OFT with clear, empirical evidence and
reinforce the valid concerns many small business owners have over their
relationships with their banks, and the banking industry in general.”
The survey can be accessed via the link below.
It is open to all SMEs, is completely confidential and asks businesses’ views on
a range of banking issues, including switching between banks and what financial
services they use.
The survey is being carried out as part of the OFT’s ongoing review of barriers
to entry, expansion and exit in retail banking.
Source: Credit
Control Journal
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