FSB calls on banks to help businesses - commercial mortgages

10 March 2009

Banks should give local branches more power to make decisions on whether to lend to small enterprises, it has been suggested.

The recommendation was included in a code of practice put forward by the Federation of Small Businesses (FSB), outlining ways in which lenders can support companies through the economic downturn.

A survey conducted by the body revealed that 86 per cent of its members believe that credit approval decisions should be made by local banks rather than centrally.

And 54 per cent of the businesspeople questioned said that they prefer to deal with lenders face to face, rather than over the phone, internet or through the post.

FSB national chairman John Wright commented: "With 120 businesses going bust a day, business owners do not have the time to wait for letters or phone call centres to enquire about finance."

If banks heed the calls, it could offer benefits for those seeking commercial mortgages.

Meanwhile, the FSB has warned firms that companies lose up to £800 billion per year due to online crime and fraud.