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Banks pledge to support businesses

By: Laura Nineham
26 October 2010

The publication of 'Supporting UK Businesses' last week received a warm reception after it set out a list of pledges that banks have made to support businesses requesting finance. 

A result of work by the British Finance Taskforce, in association with the British Banking Association, 'Supporting UK Businesses' set out ways to address concerns that banks aren't supporting businesses sufficiently. As part of the report they made recommendations that focus on maintaining better customer relationships, ensuring better access to finance and providing better information and understanding, according to Select Your Franchise.

Noel Quinn, head of HSBC UK CMB claims the report is a "significant milestone for UK businesses". He said: "We fully support the recommendations. Our lending position has not materially changed during the past two years... That said, it's also important to recognise that we must do all we can to responsibly support businesses."

"These recommendations are therefore a further positive step for all UK businesses and will help under-pin the UK's recovery," he added.

However, many people take on UK franchise opportunities without a bank loan, sometimes using a redundancy pay-out and with the public sector job cuts it's expected many public sector workers will enter the private sector this way.

Other methods of financing a franchise include outside investment from a business partner, a venture capitalist or investor, or through personal credit.

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