Banks pledge to help SMEs through the bad times

The UK's high street banks have attempted to ease the inevitable tensions at the first meeting of the government's new small business finance forum by pledging to follow a list of 10 promises to help SMEs weather the economic crisis.

Responding to criticism that banks are routinely refusing entrepreneurs finance to which they previously would have had access, the British Bankers' Association (BBA) said the guidelines which indicate how lending banks should treat SME customers are being reviewed through discussion with business groups.

The pledge comes ahead of the first meeting on Tuesday of a new forum created by ministers to improve the rapidly declining relationship between between banks and SMEs.

BBA chief executive Angela Knight said her members have committed to a list of 10 "promises" which aims to ensure all parties pull together to help businesses fight their way through the tough economic conditions.

Included in the list are pledges to speak in "plain language", to explain why a business owner is turned down for a loan, to get in touch "in time" if a company is seen to be heading towards financial difficulty and to support any rescue plan they believe