The Bank that likes to say "no"

Back in the 80’s the TSB (aka Lloyds) coined the advertising slogan “the Bank that likes to say yes”.

Fast forward to July 2012 and the launch of the government’s Funding for Lending scheme designed to help hard pressed SME’s obtaining funding. A year on and the figures reveal a somewhat depressing picture. Net lending to businesses has dropped by £2.3 billion since the launch of the scheme.

Ironically the banks who were bailed out by the tax payer namely Lloyds Banking Group and RBS are two of the worst culprits with their net lending dropping by £12 billion.

Where SME’s are able to obtain funding it comes at a hefty premium with nearly one in 10 companies servicing bank lines at more than 11 percent interest.

Whilst there is much talk about the recovery in the UK economy there is nothing to suggest a more accommodating response from the banks to small businesses in the near term.

Starved of funding businesses will find it hard to grow so it is imperative that every effort is made to maintain efficient cash-flow.