Banks are under pressure to increase lending to business owners, but many feel that the system is still hampered by traditional procedures that can be detrimental to the final outcome. It’s evident that, by approaching an independent finance house like Johnson Reed, positive decisions are much more likely.
A report by the British Bankers Association (BBA) claims that the new appeals process has overturned 39.5 per cent of rejected lending decisions in its first year of operation. To date, 2,177 business owners have been given the growth funding they require from banks. But how competent is the banking underwriting system? Alex Jackman, senior policy adviser at the Forum for Private Business, is worried that small businesses are still not benefiting in the way they could be. He says,
“The fact that almost 40 per cent of lending appeals have been completely overturned says very clearly that banks are simply not gauging some small business lending risks accurately in the first place, and that has to change.”
At Johnson Reed we believe that the banking underwriting system still relies far too heavily on automated risk criteria and on data from credit rating companies. We’re different. All our credit applications are looked at by individuals who can get a feel for you and your business. Just like the old fashioned local bank manager, we’re much more likely to ask for individual experience, look personally at your location details, and try to understand exactly what it is that you’re trying to achieve. You’re a person, not just a number at Johnson Reed.
