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Corporate debt insolvency consumers told business lending 'is stricter'

Date Added: 14/10/2010  

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Corporate debt insolvency consumers have been told that a stricter lending criterion is being enforced by Britain's banks.

John De Groot, chairman of Success Strategy Limited, stated that this has happened over the last two years, since the recession.

He explained that if he ran a bank he would have done the same, as many of the financial difficulties were due to financial services operators lending to people who could not pay the money back.

"Banks are businesses and in order to fulfil their function they have to take both a long-term and short-term view," he said.

Mr De Groot argued that in the long-term, stricter lending criteria will be good for firms such as corporate debt insolvency consumers.

He suggested that strict lending will result in a survival of the fittest situation.

Recent research from Investec Specialist Private Bank and the Entrepreneurs' Organisation in the UK revealed that one if five businesspeople use a credit card to fund their business. 

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