Banks give firms power to fight loan rejection
Small businesses will be given greater powers to challenge their bank if loan requests are rejected, Britain's biggest lenders have said.
Royal Bank of Scotland, Lloyds Banking Group, Barclays, HSBC and Santander have unveiled a scheme to ensure any decision to turn down loan applications from small firms will be reviewed by another person within the lender.
Banks will also have to provide businesses with the result of a loan appeal within 30 days and information on alternative sources of finance if the appeal is rejected as part of the pledge.
The Better Business Finance campaign, backed by the British Bankers' Association, was unveiled in Edinburgh yesterday as part of an initiative to help make lending to small businesses more transparent.
Angela Knight, chief executive of the British Bankers' Association, said: "The Better Business Finance campaign represents the banking industry's continued commitment to providing small and medium-sized businesses with the information and support that they need."