Forum of Private Business CEO reacts to bank pledges to lend more to SMEs

“The banks say demand is down. They say applications are running at an 80% acceptance rate. If this is the case, how do they intend to increase lending to small firms by 15%?

“I believe the answer is that they must review risk criteria and be less punitive on viability assessments – and make a particular effort to cut down on sector-based discrimination. 

“The banks must be more proactive in securing up-to-date financial information from their clients and they need to communicate more clearly to applicants what the key assessment criteria are, so applications are more compliant with the lenders’ needs.”

Orford added: “The message now to all small businesses is that the banks have committed to lend more. Test them on their commitment and get your applications in.”