Small businesses have struggled to access finance from high street banks since the credit crunch of 2008. Many of our members have battled to find investment to help grow and create jobs. We’re continuing to work with the Government and regulators to widen the choice of available banking products and alternative finance providers.
Small businesses are reporting that credit availability is continuing to improve. In quarter 3 2016, the FSB credit availability and affordability indices stood at their highest levels since records began at the start of 2012.
Action FSB have taken
- In May 2015 we brought senior politicians and regulators together to discuss how to increase lending to small businesses.
- In Aug 2016 we gained major policy wins as part of the Competition and Markets Authority's review into SME banking on standardisation of Business Current Accounts and better guidance for small firms
- In Oct 2016 we published a major report on access to banking and the impact of bank branch closures on small businesses
High street banks remain the dominant force in the small business finance market. A more transparent and diverse system is essential to offer small businesses a real choice of credit products and services.
We believe this would lead to greater overall stability in the finance market and protect small businesses if the economy were to suddenly contract as it did in 2008.
“I want improved access to finance so I can invest in new staff and new, innovative technologies” FSB Member.