Small businesses turned down for loans advised to appeal

The Forum of Private Business or FPB, has recently stated that if a small businesses been turned down for a loan that they should appeal the decision. They issued this statement in reaction to information that has recently been released by the British Bankers Association, which is shown that nearly 50 percent of small business loan applications have been turned down.

These figures have persisted despite the fact that the government have taken many steps in order to make lending to small businesses easier. One of the schemes that the government have implemented is the National Loan Guarantee which set various lending targets which banks were supposed to meet.

The FPB stated that if a firm appealed then there was a high chance that they were going to be given the loan. It is estimated that 40 percent of companies which launched an appeal were actually successful in getting finance.

The Chief Executive of the organisation, Phil Orford recently said, “Since May of this year, it is estimated that 40 percent of appeals that are made have the original decision overturned, meaning that more businesses are awarded finance. We estimate that because of the appeals process, nearly 2200 businesses have been awarded finance, after initially being refused.

“Generally, the appeals process is something that businesses don’t think about, that it is really something that they should be aware of. Any small business that feels aggrieved by the decision that has been come to buy their bank should appeal the decision in the hopes of getting their financing.”