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MP gives local businesses a leg up in Parliament

June 19, 2014 10:14 AM

Stockport's small businesses are in line to get a financial leg up after local MP Andrew Stunell challenged the Business Minister in Parliament this week. He wants the Minister to force banks that refuse companies business loans to explain why and to point them at other places they can get help.

Commenting, Andrew said -

"Too many businesses face a nightmare dealing with their bank when they apply for a loan or overdraft. There is an appeal system but hardly anyone knows about it. Banks are supposed to explain their decisions and to tell firms where else they could get help, but local firms have told me that just never happens."

Now the Minister has agreed to work with Andrew to force banks to treat small businesses better, and to make sure that loan decisions take proper account of a firm's prospects.

"Not nearly enough firms are appealing when their loan application is turned down, but of those who do nearly 1 in 3 get the decision overturned. The banks urgently need to make more effort at getting the decision right the first time round" says Andrew.

The big banks all run appeal systems, overseen by an independent supervisor, Professor Griggs. Successful appeals have resulted in £42 million extra loans to small and medium sized businesses in the last three years.

Commenting further, Andrew said -

"Prof Griggs estimates that several thousand more companies that have been refused loans and credit in the past year could have appealed and would have been successful. I have urged the Government to put some teeth into the system, and make sure that those companies, some here in Stockport, get a fair crack of the whip in future. Now I will be working with the Minister and Prof Griggs to get a positive result for Stockport companies."

Sir Andrew is writing to local businesses in his constituency advising them to contact him if they believe they would benefit from this new move. Contact details are 0161 406 7070 or email on enquiries@andrewstunell.org.uk