One in three small and medium enterprises (SMEs) can’t get a loan from their high street bank, research shows.
One in three small and medium enterprises (SMEs) can’t get a loan from their high street bank, research shows.
A survey of 605 SMEs which sell their products online, commissioned by online trader eBay, also finds that a third of respondents have been forced to rely on expensive overdrafts to fund business ventures.
Taxpayer bailed-out bank the Royal Bank of Scotland/NatWest scored the worst marks from its customers, with 37 per cent reporting difficulties in accessing new finance.
HSBC was the next worst with 36 per cent of businesses unable to access money followed by Lloyds at 33 per cent, Barclays at 32 per cent and Santander at 19 per cent.
The survey finds cash-strapped growing businesses which have had their applications turned down have turned to overdrafts to fund operations and growth, with some 41 per cent of HSBC customers going down this route.
RBS/NatWest followed at 39 per cent with Barclays at 35 per cent, Lloyds at 29 per cent and Santander at 19 per cent.
On helpfulness, Lloyds has the worst score card: 58 per cent of the bank’s customers say the finance giant hasn’t been more helpful since the recession started.
HSBC was marginally better at 53 per cent, followed by RBS/NatWest and Barclays at 50 per cent, and Santander at 48 per cent.
More than half of the business leaders who took part in the survey believe the government should promote greater competition in the sector, as opposed to maximising taxpayer returns on the sale of nationalised stakes in RBS and Lloyds.
