The Federation of Small Businesses (FSB) is calling on banks to return to their “normal lending criteria” next year. The FSB, which represents 215,000 small firms across the UK, said Britain’s five million small businesses will be at the heart of the UK’s move out of recession, but need more help. FSB chairman John Wright said: [...]

More: FSB calls for banks to lend more next year

Having been on both sides, I used to be a Business Banking Manager and now I run my own small business, I couldn't agree more.

Not only have banks reduced their willingness to lend but they have also been putting up the fees and rates for existing facilities.

Talk about a double whammy! I understand the banks are trying to get back to a position of strength, and they are a cornerstone of our economy, but small businesses have a crucial role to play too.

Did you read the recent report that only 1 out of every 10 SMEs is creating jobs at the moment? And here we thought entrepreneurs would lead us out of this crisis!

How can they if the banks are unwilling to support them? It makes matters a lot harder doesn't ti really?

Lets see how this year pans out and hope the banks do go back to thier usual lending practices! I mean even bank charges on normal accounts have rocketed up! Its crazy really if you ask me!

[QUOTE=Laila;8799]Talk about a double whammy! I understand the banks are trying to get back to a position of strength, and they are a cornerstone of our economy, but small businesses have a crucial role to play too.

QUOTE]

Absolutely, I couldn't agree more. Small businesses never get the recognition they deserve, even though they play a vital part in the British economy.

So long as banks won't go above 70% LTV, it's difficult to borrow.

Wanted to do so at the end of last year to buy business premises, but at present can't do it, despite an excellent credit record.

In terms of business lending for small to medium sized businesses the banks seem to wobble if they cannot provide at least 30%. During my time as a Business Banking Manager the Business Lending Unit would not move on that criteria when everything was coming up roses. I can only imagine how water tight a case has to be now to get approval.