As we have commented on a number of occasions, the current lending situation is one of the biggest challenges currently facing small businesses. This fact has been supported by numerous economists and banking heads, indeed, even the head of the Bank of England Melvyn King has stated that banks restricted lending is jeopardising the UK’s economic recovery.
Consequently, as it is announced that banks lending to small businesses and companies which have recently been formed fell again last month, the Office of Fair trading has now launched a campaign to uncover how small business owners are being treated by banks as they attempt to raise finance for their businesses.
One of the SME forums who are taking part in the research is the Forum of Small Business and Enterprise; we speak to its founder Marcus Cooper;
“The changing relationship between banks and business has received much attention of late. I think the OFT’s research is extremely positive and means that we are one step closer to understanding how the current lending situation can be resolved.”