Small firms should share their experiences, says FPB

Small businesses should participate in a new survey which will highlight their relationships with banks, business support group suggests.

Following recent figures by the British Bankers’ Association that show lending to small businesses fell again in July, the Office of Fair Trading (OFT) has put together a questionnaire in an effort to find out how small businesses feel they are being treated by their banks.

The Forum of Private Business (FPB) will be hosting the survey on behalf of OFT, and hope to provide them with clear evidence that relationship between banks and small firms are under scrutiny.

The group pleads for as many small firms as possible to take part in the questionnaire in order to fully highlight bank-related problems and difficulties that they face.

FPB’s Research Manager, Thomas Parry, said:

“Clearly, the issue of the way banks treat small firms has received an enormous amount of attention recently and sparked a lot of debate.”

Mr Parry said that many have been arguing that smaller firms are being unjustifiably denied credit, or offered it at an extortionate cost. But the banks have claimed that lending is down simply because demand is down and they are doing everything they can to increase the flow of finance to business.

“We hope this survey will provide the OFT with clear, empirical evidence and reinforce the valid concerns many small business owners have over their relationships with their banks, and the banking industry in general.”