Businesses turned down for banks loans should make use of a new appeals process, according to the Forum for Private Business (FPB).
The new resource, launched this week by the British Banker’s Association (BBA), allows entrepreneurs who feel they have been unfairly denied credit by a major bank to request a review. A second opinion will then be provided by an employee of the same bank, who has had no previous involvement in the complainant’s application.
The reviewer must provide a decision on the appeal within 30 days; if the application is turned down again, the bank must give the applicant detailed advice on alternative funding sources.
The appeals system will be independently overseen by Professor Russel Griggs, former chair of the CBI’s council on small and medium-sized firms.
Phil Orford, former chairman of the FPB, said: “If business owners do not pursue the appeals avenue when their loan applications are denied, it will effectively let the banks off the hook and allow them to say that small and medium-sized companies are happy with their lending decisions.
“As a result, I would urge all business owners who feel their loan applications have been unfairly turned down to lodge an appeal at the earliest opportunity.”