Lender broadens business bank account options

One financial services provider has recently announced it will be increasing the level of support it provides for its business bank accounts.

Clydesdale and Yorkshire Banks recently stated that they will be broadening its range of banking options for smaller firms in the UK.  This comes on the heels of new research conducted by the British Bankers’ Association indicating that small companies represent more than three out of every ten firms turning over.

Clydesdale and Yorkshire Banks stated that the business loans it has offered to new firms is on track to hit £10 billion by the end of this year.  Despite these figures the lender wishes to expand even further by 2015.

Small business director, Gary Lumby, stated that small firms are integral to the health of the UK’s economy.  Mr Lumby states that the bank has been listening closely to their needs and has adapted their offerings to reflect the differences.

In related news, chairman John de Groot, of business website Success Strategy, recently stated that organisations may find only limited options for their business banking needs in the wake of the global economic downturn.

The organisation’s chairman stated that a large proportion of building societies and banks in the UK have found new firms to be too risky to provide venture capital to.  Mr de Groot suggested that, based on small business feedback, financial service providers have been holding prospective loan customers to a much higher standard than was the norm in the pre-recession economic era.

The business specialist did state however that this may change quite rapidly.  This is due to the importance lenders place on appearing more welcoming than their rivals when it comes to granting loans to small or new businesses.

Meanwhile the government recently came to agreement with the largest banks in the country to lend £190 billion in new credit to businesses in the coming year.

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