Big Bad Banks Not Only Option For SMEs

26th January 2018.

Richard Davies, the commercial banking director at TSB recently wrote an article for the Daily Telegraph criticising the unhealthy relationship between big banks and SMEs. While he does berate SMEs for their reluctance to embrace new tech, he also acknowledges that their expansion goals are not aided by high street lenders. Small business confidence is shrinking as more firms put off the expansion of their business due to the difficulty in finding funding. While Mr Davies suggests banks must improve their processes, here at the Credit Protection Association we believe it is important that small businesses know their options, and know there are alternatives to the big bad banks.

Richard Davies claims that the majority of small business owners ask little of their banks and instead turn to their family and friends for financial support.

Mr Davies insists that something needs to be done to stop this “massive” funding gap afflicting small businesses.

The businesses that occupy the SME sector are diverse and come in different shapes and sizes as well as different industries and revenues. Businesses need to find the support that recognises this and adapts the financial aid according.

At the moment the lending process is overly complicated and Mr Davies insists businesses need banks to do “the basics” brilliantly.

This means a more straightforward process with total transparency and fair rates, and no small print designed to “fleece” the customer,

Small businesses need financial supporters who will help them to grow, the banking director insisted, Solutions need to be personalised, not “one size fits all”, Mr Davies added.

Ever since the scandals surrounding RSB’s Global Restructuring Group (GRG) and the fraud scam at Lloyds’ HBOS Reading branch, trusting your bank has become far too difficult. Unfortunately, many businesses think that is their only option. This is wrong. Banks have chiselled away at the important personal relationship that existed between the lender and small business owner, and they now have the freedom to explore other options.

Rather than borrowing money from somebody else and with a hefty interest fee added on, why not free up your cash flow! Remember those overdue payments that you never recovered and those late payers that become forgotten payers? Well, here at the Credit Protection Association we can help! We have a range of credit management products that we can utilise to free up cash flow and allow you to concentrate on growing your business. We can offer advice on improving your credit score which will aid your expansion plans, and we will also chase down those late payers and non-payers and get your cash flowing again! So before you consider taking out credit, see if we can’t improve yours! Get in touch with CPA by the details below!