RBS to set up SME loan hotline

The RBS, or Royal Bank of Scotland, has responded to pressure from the Government to increase its SME business loans, by setting up a hotline tailored at helping small firms get approved and access to loans.

Both the RBS and fellow bank Lloyds have come under fire by the Treasury lately, for offering interest rates on loans that are so astronomical SME owners have been afraid to touch them.

The banks defended their position saying that it is hard for small firms to compete with larger companies as everyone is looking to stay out of further debt during the recession.

The Chairman of the small business department at the RBS, Peter Ibbetson, said that the new Business Hotline will be open for all small firms to utilize, even those that may not be customers of the bank.

He said that this way all businesses get a fair hearing, and small firms that feel they should be reconsidered after being passed by, can get the chance to be re-investigated.

According to Ibbetson the bank approves about 85% of all loan applications at the moment, and is always looking at ways that they could increase the lending approval figure.