Banks' attitudes to businesses is heartbreaking, says BV West Midlands director
The executive director of Business Voice West Midlands has told Insider that receiving loans and finance has “risen to the top of the agenda” for most small and medium businesses, and described the attitude of the banks towards companies in need of finance as “heartbreaking”. James Watkins also discussed the lobbying group’s role in getting businesses involved in the creation of the region’s Local Enterprise partnerships (LEPs).
He said: “We believe in local delivery. In the West Midlands, we care passionately about the engineering, aerospace and food and drink supply chains. We need to make sure that these supply chains are not ignored. All 33 of the regions councils have agreed to this structure, and we’ll work together to make sure that there are local mechanisms working in a wider region."
Watkins also discussed the effect that the banking crisis was having on the region’s small and medium sized businesses.
"The issue has definitely risen to the top of the agenda," said Watkins. “And the banks’ approach to lending is just heartbreaking.”
He added: “The focus has turned away from long term loans and overdraft facilities, and towards invoice depositing. Invoice depositing definitely has its place in the market for companies with short-term cash flow problems, but it should not be used as a substitute for loans and overdraft facilities”.
Watkins added that although the LEPs’ remit would focus on problems such as infrastructure, access to finance could become an issue for the new bodies to take on.
