Friday, July 17, 2009

Some banks imposing blanket bans on pub and restaurant loans, warns FPB

The small business support and lobby group believes some banks may be automatically refusing loans to firms in the industry due to misplaced fears over their viability.
The issue was given heightened exposure today (Thursday July 16) when Business Minister Ian Lucas admitted that he was well aware of the problem. Mr Lucas made his remarks in response to Lib Dem MP Greg Mulholland during oral questions in the Commons. Mr Mulholland said pubs were not receiving credit from banks and asked Mr Lucas to look into it.
The FPB is concerned that the entire sector may have been classed as high risk by certain lenders. As a result, it is thought they have effectively imposed a blanket policy of not providing pubs and restaurants with loans, rather than looking into the viability of each business on a case-by-case basis.

Read more:
http://www.fpb.org/news/2220/Some_banks_imposing_blanket_bans_on_pub_and_restaurant_loans__warns_FPB.htm

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