An appeals process for small firms which have finance applications turned down by the UK’s leading banks continues to benefit businesses throughout the UK, according to the independent external reviewer.
The scheme has secured nearly £5million in additional funding for small businesses in the past quarter alone, bringing the total additional funding secured since it was established to £46.3million.
In a report covering April-June 2014, independent appeals reviewer Professor Russel Griggs, says that almost 1,000 more small businesses challenged their bank in the period, taking the total number of appeals to date to nearly 10,000.
The appeals scheme allows businesses with a turnover of up to £25million to challenge their bank if they are rejected for finance or are unhappy with the conditions they are offered.
Prof Griggs said: “My team and I are committed to improving the dialogue between banks and their customers, so that businesses can better understand their finance decisions.
“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.
“The appeals process has become a positive driver of change and is making a real impact on the lending process for SMEs (small and medium-sized enterprises).”
He added: “I will continue to investigate awareness of the appeals process among SMEs that have been declined as well as work to ensure that all types of eligible decision are included in the process.”