The world’s big banks seem to have a stranglehold on the smaller competition. The Federation of Small Business and its Chairman John Walker report that over fifty percent of small businesses had not applied for bank loans, for fear of being rejected.
The BBA Taskforce did research with a group composed of those involved in big banks and big business which claimed that most loan applications coming from small businesses had been given the go ahead, although the FSB noted that many in small business did not want to apply at all, for fear of rejection.
Also, people reported a lot of hassles and red tape to wade through in order to even get the process rolling for a bank loan. Anticipating lots of questions to answer, and a lot of time and effort to get the ball rolling, people shied away from the complexity of the bank loan process.
This dissuaded a lot of people from wanting to get started at all, and so fewer loans were given out given the actual percentage of small businesses. The banks were technically correct in their findings that most loans were approved; they just didn’t reveal why there weren’t more loans being applied for in the first place.
People are getting tired of being suppressed by ever-expanding corporations, banks, and big business in general, and the FSB shines light on the fact. Research from an obviously-biased special interest group can be true in what it reports, yet misleading to an ignorant reader in other ways as noted above.