If you are trying to find company funding from your bank, you have to collect all sorts of details to back up your application. Obviously, your outsourced bookkeepers are the ones to recommend you on putting the very best possible case, and ideally, you’ll get what you want. However what takes place if you don’t?
Making an Appeal
The huge 5 banks– Barclays, HSBC, RBS, Lloyds and Santander– just recently consented to establish an appeals process for businesses that have actually been rejected for a loan. If you have actually made an official demand that was declined, and you believe the choice was unfair, you can make an appeal and needs to ask ways to proceed. On receipt of your appeal, the bank must have their choice reviewed by another member of their staff who was not a party to the decision-making process. You must get the outcome of the review within Thirty Days.
This will just apply if you’ve gone through the formal application procedure, not if you have actually just had informal discussions and been informed that you haven’t a chance with them. However in that case they ought to be offering you suggestions about other possible sources of financing, or how to go forward without it.
Responsibilities of the Bank
While there are no warranties that the bank will accept reverse the decision on appeal, you need to get some comparable gain from the process. If you do not get the loan, the bank ought to offer you advice on where else to pursue funding, or provide support in a various type. They might, for example, put you in touch with a business mentor who could assist in some method.
This has happened because of the Better Business Financing Project spearheaded by the Company Financing Taskforce of the BBA, which calls itself ‘the leading trade association for the UK banking and financial services sector’. It stays to be seen how valuable the right to appeal will certainly be for SMEs, but it needs to be another step in the right instructions following the banks’ dedication to setting upa new ₤ 1.5 billion Company Development Fund over the next couple of years.
Lynn Watson is the Director of Workplace Assistants, a business that offers little to medium companies of all types the chance to cherry pick from a versatile range of services including bookkeeping; VAT; Payroll; CIS returns and basic workplace services. The company has Twenty Years experience and pure knowledge in simplifying and making considerable savings for all types of Essex and London companies from sole traders upwards. For more details visit www.officeassistants.org