How the Banks Screw Small Business with a Smile!

‘Darling Brown’ – I love calling them that – are telling us everyday how much they are working to help small business to get finance and get the banks back to lending. With Bank Bail-Out 2.0 under way, we the taxpayers are continuously bailing these guys out, to the detriment of pensions, our currency, house-prices, lost jobs, economic down turn and so on and on. In other words we, the tax-payers are being very nice to all these bankers who got us all into trouble.

Every-time Darling Brown open their mouth, money falls out, our money and lots of it.

Even more surprising our state has obviously granted total immunity to our beloved bankers for their recklessness, greed and stupidity. Of cause if we, the small business people in this country, did anything only remotely similar, we would be in jail – we won’t even mention any bail-outs.

Alarmingly our favorite bankers still have not been helped enough, as many of my clients report they are being asked to pay double the interest on their overdrafts/loans as before. For instance where clients payed 2% over base rate for their loans, Barclays Bank PLC now asks for 4% over base on renewal of facilities, but kindly offer not to increase the facility fee.

Small business can not get any credit, and if it can the interest payable has been doubled. What I do not understand how exactly this is going to help small business. I always thought that the interest rate cuts by the Bank of England, was to help small business and consumers to stay afloat and get this economy back onto its feet?

The interest rate cuts only help the banks nobody else – and that, is a disgrace. — ST.

4 Responses to “ How the Banks Screw Small Business with a Smile! ”

1. The Razzor - Essential Information for Small Business » Blog Archive » Posts about Small Business Info as of Thursday, January 22, 2009
   
   Said on January 22nd, 2009 at 1:29 pm

   [...] Conditions are perfect for the run of a lifetime. Look in any direction and there are bargains How the Banks Screw Small Business with a Smile! – sme-blog.com 01/22/2009 hypermania2080200054.jpg ‘Darling Brown’ – I love calling them that – [...]

2. Russell
   
   Said on January 22nd, 2009 at 5:11 pm

   Absolutely spot on post! All the best.

3. jmarks
   
   Said on January 23rd, 2009 at 11:59 am

   I agree. Banks take your money, but are willing to help you when you need them the most. I had to close my retail business last year, mainly because my bank would not renew my line of credit. Looking back, maybe they did me a favor. However, still leaves me frustrated with banks.

4. Leaflet Distribution
   
   Said on January 26th, 2009 at 9:52 am

   I think most people would have the opinion that banks are always more than happy to lend you money when you dont really need it, but as soon as you do they run a mile.
   This is the reason that so many individuals and companies run into difficulties when times become a little tough.

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