RBS: No evidence of small firm fraud

Royal Bank of Scotland says law firm Clifford Chance has cleared it over allegations that it forced small firms to close so it could make a profit.
The bank asked the law firm to look into the claims in November 2013 after a report criticised it for its treatment of small firms.
The law firm concluded that there was no evidence to support the allegations.
RBS chief executive Ross McEwan welcomed the findings, calling the allegations “serious and damaging”.
Clifford Chance was appointed by […]

Vince Cable hires ‘resident entrepreneurs’

Two “entrepreneurs in residence” have taken up roles as government advisers and identified small companies’ struggle to access bank finance as their top priority.

Lawrence Tomlinson and Rekha Mehr will work one day a week at the Business Department, with Vince Cable describing the appointments as “important voices for business”.

The Business Secretary said they would help the Government “address the needs of small and medium-sized businesses”. Mr Tomlinson runs the Leeds-based LNT Group, which has a £100m turnover with interests […]

  • cable rekha mehr tomlinson

FSB – Only 37% of SMEs Aware of Funding Alternatives

A recent survey from the Federation of Small Businesses found that just 37% of SMEs knew about them.
When Simeon Penn, director of powerboat experience company Saber Powersports, needed a loan for a new boat, he didn’t go to his bank.  Instead, he got the money from Funding Circle, an online marketplace that allows individual savers to lend money directly to small and medium-sized businesses (SMEs).
Mr Penn’s accountant suggested he try this alternative form of funding after the bank failed […]

Co-op Bank Confirms losses of £1.3bn

The Co-op Bank has confirmed it made a loss of £1.3bn last year and will remain loss-making for the next two years as the troubled lender published its twice delayed annual results.

The lender said it had begun talks on a £400m fund raising and warned that without the new money it would be in breach of its minimum capital requirement.

Niall Booker, chief executive of the Co-op Bank, apologised for the situation and said the lender would be clawing back […]

Asset Based Lending extension for SME manufacturers

Small and medium sized manufacturing businesses will be able to use their assets to borrow cash thanks to a newly created team at RBS and NatWest.

Asset based lending (ABL) is a well established funding mechanism which allows companies to borrow money against its assets including existing stock and equipment.

The newly established team includes 11 specialist finance managers who facilitate deals across the UK – specifically for businesses with a turn over of between £10 million and £25 million.

Although RBS […]

  • Bank bonuses
    Permalink Gallery

    Alternative Funding Grows as 35pc of SME Bank Loan Applications Fail

Alternative Funding Grows as 35pc of SME Bank Loan Applications Fail

Amid a soaring failure rate for bank loan applications, small firms are looking to alternative finance providers for growth capital. Entrepreneurs share their experiences.
The local bank was once the first port of call for a growing business seeking finance. Today, however, , according to the latest SME Finance Monitor from BDRC Continental. And recent Bank of England lending figures showed a drop of £300m in small business lending in January this year.

Against this backdrop, a raft of alternative funding […]

  • Bank bonuses

Federation of Small Businesses Chief on Scandal Hitting Bank SME Lending

The Federation of Small Businesses and the British Chambers of Commerce have teamed up to investigate the state of the banking industry’s lending practices and small to medium enterprises.
The Business Banking Insight programme (BBI) will ask micro companies and SMEs to share their experiences to provide insight into the best banking services available across the UK. The first set of results will be published in May.
Speaking to IBTimes UK, FSB’s National Policy chairman Mike Cherry reveals how a lot […]

  • fsb

RBS faces interest rate swap lawsuit – Mr Justice Le Poidevin

Royal Bank of Scotland is to be sued over an alleged mis-sold interest rate swap after a judge ordered administrators to stop blocking an attempt by the owners of a failed business to seek compensation.
The High Court ruling paves the way for others whose businesses have been put into administration to pursue claims where administrators will not.
Banks had paid out £482m in redress to 3,400 customers by the end of February after regulators found “serious failings” in the way the products were […]

Lloyds to lend an extra £1bn to SMEs

The bank’s promise over the coming year plays its part to revive one of the key elements of the UK economy
Lloyds will pledge to lend an extra £1bn to small and medium-sized businesses over the coming year as it plays its part to revive one of the key elements of the UK economy.

The bank’s promise follows recent Bank of England lending figures which showed a drop of £300m in loans to small businesses in January this year.

The commitment forms […]

SME Lending Inquiry by Treasury Select Committee

Deadline for submissions is Friday 28 March 2014, written evidence invited by members of the public.

Written submissions to the inquiry should be submitted online:

Send a written submission to the inquiry

If you are considering sending a written submission please read the following guidelines:

Guidance on written submissions

Following its recent evidence sessions with Sir Andrew Large, Laurence Tomlinson and the Financial Conduct Authority, the Treasury Committee has announced that it will be conducting a short inquiry into SME lending.

The inquiry will focus on three issues; […]

  • SME Banking