4R Blog

RSS Feed

Business lending report 'is nonsense'

Date Added: 16/09/2010  

Looking for business debt advice in Manchester? Call 4R Business Recovery for help

A recently-published report into how banks should decide which companies needing business debt advice to lend to has been described as "nonsense" and "pointless".

Some of the biggest banks in Britain commissioned Experian subsidiary pH to look at whether they should profile the businesses they lend to independently.

But the report drew immediate criticism, with Philip King, chief executive of the credit industry body the Institute of Credit Management, describing it as a "pointless exercise".

Speaking to the Telegraph, he said: "Most small businesses file modified, abbreviated, unaudited or even no accounts. On this basis, there is not enough information to comment on their viability as borrowers."

Managing director of credit agency Graydon Martin Williams added that the study was "nonsense".

He said a major bank will know more about businesses requiring company debt advice than an independent credit firm could.

Chris Baguley, managing director of Bridging Finance, recently stated that many firms are finding it difficult to secure funding from banks. 

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback