NACFB 2014: Small businesses may be “falling through the cracks”

Thompson said that there is an issue with underwriting for small businesses after a member broker in the audience argued that small businesses were losing out.

He said: “On several occasions I’ve encountered issues with potential clients running small businesses, ranging from newsagents to fish and chip shops.

“These are good businesses with a sound financial plan, but they are being declined a loan due to a reluctance from both intermediaries and lenders to underwrite for small businesses.

“Granted some of their accounts are a bit difficult to work through, however new FCA regulation means lenders are struggling or unwilling to write loans under the new restrictive controls- it means small businesses are falling through the cracks.”

Thompson said that the issues raised presented a problem for lenders and was another example of the challenges brought about by new regulation.

He also emphasised that small businesses represented an important segment of the market and finding a solution should be a priority.

Gareth Claxton, head of commercial lending at Aldermore said that the bank is aware of the difficulties for small businesses and is working towards a solution.