Commenting on the release of the independent SME Finance Monitor, Caroline Williams CEO Norfolk Chamber, said:
“The latest statistics from the SME Finance Monitor demonstrate that there are still serious obstacles for many companies seeking external finance. The figures strengthen the case for the creation of a British Business Bank, which would help address some of the problems in business lending.
“It is striking that the number of successful applications has fallen. Many companies still say they feel discouraged from applying or are put off by the process. Despite claims that financial institutions are open for business, only a minority of first-time applicants are being approved for loans and overdrafts by their banks.
“While it is good to see that most existing bank customers get the facilities they need when they ask for them, lenders’ low risk appetite means that too many young and fast-growing companies aren’t getting access to the capital they require. With companies less confident of a successful application for finance in the future, there is more to be done to restore relationships, improve transparency and rebuild trust between businesses and banks.
“The Norfolk Chamber’s Business and Finance group (BFG) which includes all the major banks repeatedly say that they are very much open for business and are willing for us to challenge them with any cases from our members who feel they are not getting a positive response. The BFG group are working on putting together an event which will pull together all types of finance opportunities to try to get more finance to the businesses who need it to grow”
