FSB Finds Businesses No Longer Approaching Banks

New stats from the Federation of Small Businesses indicate that small businesses either still haven’t made peace with banks, or – and this is a much more positive possibility – they’ve figured out how to get along without new loans.  Either way, small businesses just aren’t applying for many loans.

The FSB surveyed around 1,400 of its members, and found that only 18 percent have applied for fresh credit, which seems like a smallish number.  Especially considering that banks have, according to most reports, been acting stingy with cash for quite some time.

Then here’s a fact that seems destined to split the glass-half-empty and glass-half-full crowds: exactly 50 percent of the FSB members’ applications for new credit were successful.

These details led John Walker, National Chairman of the FSB, to say in a statement, "Trust needs to be restored between banks, bank managers and business as credit conditions remain tight for small firms.  We hope the next government – of whatever hue – will look at the best way to address the issues in the banking system to ensure that the UK has the necessary financing structures to support further economic recover."

Which seems like a fair request even if small businesses aren’t in dire need of loans.