4R Blog

RSS Feed

Business debt advice customers 'cannot get funding from banks'

Date Added: 22/10/2010  

Banks prefer to lend their money to companies that do not need it rather than those that are taking business debt advice.

This is the opinion of Michael Baxter, editor of Investment and Business News, who pointed out that many banks are unwilling to lend to firms that they consider a risk, even though it is these companies which are most in need of the money.

"The ones that do need funding are the ones they are not offering it to," he said.

Mr Baxter added that it can be a catch 22 situation, as consumers believe banks are not lending to organisations, which makes them more responsive to applications, but they still prefer to lend to safer options than those taking business debt advice.

He was commenting after the Bank of England's Trends in Lending October 2010 report found that the flow of lending from banks to businesses improved in August. 

Get the Help You Deserve

0800 90 20 123

Urgent Help Call 24/7

020 7183 2606

We'll Call You

Request a Callback