I have now started a discussion with all the banks to try to establish, where needed, a common vocabulary where appropriate across all banks for SME lending, as part of this commitment to improve conversations and understanding between banks and small businesses.
The three months to June have shown again that the banks are now using the appeals process to continually assess and look at their decision systems. It is clear how the appeals process has become a positive driver of change and is making a real impact on the lending process for SMEs.
The report further said that failed credit scoring was the most common reason for the rejection of the loan applications, and accounted for 36% of the refusals. Despite of that, banks are stepping up their efforts to make sure businesses understand the importance of a healthy credit rating.
Banks like Barclays, Lloyds Bank, Bank of Scotland, HSBC, RBS, NatWest, Santander, TSB, Ulster Bank, Bank of Ireland, Danske Bank, First Trust Bank and Clydesdale Bank are all participating in the appeals process.
