Bank complaints on the rise

Came across this article on the Herald Scotland website recently which highlights the compaints against banks increased by a massive 15%!

Banks under fire as number of complaints increases by 15% - Herald Scotland | Business | Personal Finance

Would be interested in hearing how you as a small business owner are finding the banks at present. Do you think they are helping you as a small business or is a more negative viewpoint?

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I have found from my client base that the majority don't look on the banks as an option for help now. They ensure they stay out of debit so they don't incur charges and they find other ways to finance growth. The banks are heading towards being viewed just as the guys with a big safe to keep your cash in and as someone who can facilitate your online payments. Sad really.

I completely agree Craig. It kind of feels like we need something fresh in this marketplace and with Tesco Bank and Virgin putting roots in Edinburgh maybe they ca be a force for good in small business banking.

Some other linsk to recent articles on this subject in The Scotsman and The Herald

Scottish entrepreneurs 'don't trust banks' - Scotsman.com Business

Small firms ?choked of funds? by the big banks - Herald Scotland | Business | Corporate & SME

Would be good to have other thoughts and opinions

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The fact that the scenario isn't just down to the banks now either is worth thinking about now as well. In all openness the last six applications that I saw for bank funding that were refused were refused correctly as the cases were no where near string enough but they would have been funded 3 years ago. We all blamed the banks for the recession and a big part of that was that they funded too many businesses who were only applying for funding as they were in trouble and the chances on them getting repaid were slim. Now they aren't doing that they are getting criticised for that too.

Hi Craig,

You do make a valid point, the banks were just financing anyone 3 years ago and in most cases the businesses weren't necessarily viable.

That being said, I do think they've gone from the sublime to the ridiculous and I'm now seeing cases where businesses with a strong balance sheet and real growth prospects are being denied funding.

There just seems to be conflicting messages, firstly the government are saying entrepreneurs are going to lead us out of this recession and prop up the public sector in terms of job losses. Surely they need funding?

Then you've got the banks saying they are lending but there also having to strengthen there own balance sheet reserves, mainly because they don't know what will happen from a regulatory point of view.

It all comes back to this, if your looking to grow your business - approach friends, family and any other option (bar loan sharks) before approaching a bank. The government should be breaking them up to increase competition which would in turn make the market more competitive.

I'm really trying to stop bank bashing but they don't do themselves any favours and unfortunately love them or loathe them - we're stuck with and have no other alternative.

Regards

Neil