BBA better business finance initiative

The British Bankers Association (BBA) and the major UK banks are implementing the recommendations of their report "Supporting UK Business". During 2011 business should see changes taking place in UK business banking. Some of the planned actions have already been implemented. These include;

Regional outreach roadshows

Do you run a business? Do you need help and guidance about the banking services available to you? If so, a Better Business Finance event may be for you. Throughout 2011 Better Business Finance will be on the road, holding a series of events across the UK at which businesses, advisors and representative bodies can get face-to-face information and support from banks.

Find out more about the programme running near you

If refused credit find out how to appeal

What is it?

If you are declined lending following a formal application for a business loan you have the right to appeal the decision. Britain’s largest banks have agreed a new set of principles, which set out exactly what you should expect when appealing. These principles will be monitored and scrutinized by an independent and external team of reviewers, ensuring that the banks’ have implemented a fair, prompt and transparent appeals process.

How can I appeal?

Each bank has its own appeals process, so the way in which you launch an appeal will differ depending on your bank. If you are declined lending, your bank will write to you and give you the details of their appeals process. It will not launch automatically following a decision to decline your application so it is up to you to generate an appeal if you feel you have been declined unfairly.

Find out more about the appeals process

A guide to the lending code for Micros

Introduction

This guide gives you an introduction to the standards you should expect from banks, building societies and credit-card providers who follow the Lending Code.

The Lending Code covers:

• business loans;
• credit cards and charge cards; and
• current account overdrafts.

These standards apply to ‘micro-enterprises’. These are small businesses with a turnover of no more than €2 million a year and with fewer than 10 employees.

The code is monitored by the independent Lending Standards Board (LSB). You can find out about the LSB and the lenders who follow the code at: www.lendingstandardsboard.org.uk.

Where to find the code

You can download the Lending Code from your bank’s website or from the LSB.

Key commitments to you

Lenders will act fairly and reasonably in all their dealings with you.

They will make sure:

• their advertising and promotional material is fair, clear and not misleading;
• they give you clear information about their products and services – how they work, their terms and conditions and the interest rates and charges that apply to them;
• you can bring your professional advisers with you to support you in your discussions with them;
• that if you ask, they will give you an in-house guide or industry-standard literature on the factors that determine how they set their prices;
• they will tell you how long it will take for them to make a lending decision, starting from the point when you give them the information needed to complete the application;
• they lend money responsibly;
• wherever practical, they will give you clear feedback when they have decided to decline (refuse) a request for credit, including what steps you might take next;
• they have a fair and effective appeals process in place to review decisions to decline a credit request;
• they tell you about your right to appeal if your application is declined;
• they give you regular statements and tell you about changes to interest rates, charges or the terms and conditions for your account;
• they deal quickly and sympathetically with things that go wrong;
• they act sympathetically and positively when considering your financial difficulties; and
• your personal information is treated as private and confidential.

Download the full version

Lending principles for larger businesses

What the Principles cover

The Lending Principles set minimum standards of good banking practice that larger business customers1 can expect when banking and doing business in the UK.  The Principles cover key aspects of the relationship between banks and larger business customers, from product information and credit application to ongoing communication and dealing with difficulties if things go wrong.

Who they apply to

The Principles apply to businesses with a turnover of less than £25 million but do not cover the smaller business segment, which is protected by the Lending Code2.

Which banks follow them?

These Principles are followed by the five largest UK banks. The banks are Barclays, HSBC, Lloyds, RBS and Santander.  Each bank will use their systems and publications to promote and reinforce these Principles, and will make sure that all relevant staff understand and apply them.

Download the full version