The main reason small business owners are dissatisfied with the banks is because of their reluctance to offer credit, it has been suggested. A recent study by the Federation of Small Businesses (FSB) indicated that the removal of decision-making powers from local branches, and the provision of multiple account managers, has damaged the relationship between high street banks and small companies.
Gareth Osborne of APA believes the main problem is the banks' continued lack of financial support for the small business sector. "Instead of providing much-needed funding for businesses, many banks are now trying to repair their balance sheets, and small business owners feel that they are being made to pay for the banks' previous poor investments.With the Bank of England freezing its base rate at 0.5 per cent for the 15th successive month in June, many small business owners are finding this "difficult to swallow", he stated.
In the FSB study, a quarter of all respondents said they were dissatisfied with the level of service currently provided by their high street bank.
Gareth Osborne of APA believes the main problem is the banks' continued lack of financial support for the small business sector. "Instead of providing much-needed funding for businesses, many banks are now trying to repair their balance sheets, and small business owners feel that they are being made to pay for the banks' previous poor investments.With the Bank of England freezing its base rate at 0.5 per cent for the 15th successive month in June, many small business owners are finding this "difficult to swallow", he stated.
In the FSB study, a quarter of all respondents said they were dissatisfied with the level of service currently provided by their high street bank.
APA
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