The banking industry says it will help small business customers in difficulty during the economic downturn by revising their guidelines for dealing with customers.
The banking industry has come under intense government pressure to pass on cuts in interest rates and help firms who may be running into trouble.
However the new guidelines put the onus on small businesses customers to ask for help early, and warn that banks will still have to protect themselves.
The guidelines have been published by the British Bankers’ Association (BBA) and include:
• pro-active contact by banks if they think firms might be in trouble
• banks to offer to discuss all concerns in person
• banks will look to use business assets as security before they consider personal assets as security
• business account switching within 5 working days
• banks helping customers to revise their business plans and forecasts during the recession if necessary.
The guidelines have been revised after consultation with the Department of Business, Enterprise and Regulatory Reform (BERR).
However the new BBA guidelines state clearly that a firm in trouble which has agreed a rescue plan with its bank may find that its borrowing costs go up as part of the process - but the bank will explain why.
Posted in Business Planning, Grants & Funding, News | 
Source: Business Bable
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