Be brave and take a punt on strong SMEs, banks told
- In the recession, banks are focusing too much on blue chips
- But many SMEs are still strong and just need help getting through the downturn
- If one bank took a punt and better supported SMEs, more lenders would follow
Supporting strong small businesses through the recession could prove a masterstroke for a bank brave enough to take a risk on more marginal companies, an expert has claimed.
Phil Meeking, from business turnaround specialists Wilson Field, said given the number of people SMEs employ and the amount they generate for the UK economy, a confident lender should move beyond the corporate market and back those small companies which are sustainable but need a helping hand to cope with the recession.
"Businesses are suffering as a result of a continued dearth of the availability of commercial credit and this will hamper the rate at which the economy recovers," he said. "So as we only just struggle out of recession (with a huge journey ahead), at some point one bank – perhaps a new player in the market – will break the cycle.
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