Part of the Banking Futures initiative, the ‘Banking Small Businesses’ report which was published on 10 July 2017, makes a number of recommendations in support of improved lending standards for small businesses. Supporting this work, the Federation of Small Businesses (FSB) is calling for all banks to sign-up to the Standards of Lending Practice, which is independently monitored and enforced by the Lending Standards Board, to provide increased protections for their customers.
Mike Cherry, FSB National Chairman said: “The LSB’s standards offer a win-win for the small business community. Signatories are instantly more attractive to potential customers and small firms can rest easy when agreeing terms with adherents. We need to create an environment where small businesses are fully aware of all the finance options available to them and understand exactly what they’re signing-up to when they take out a loan. Information asymmetry is, quite simply, bad for business.”
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