Nearly 60% of businesses seeking bank finance in 2009/10 were rejected by their bank, and 20% are financing their businesses to some extent with credit cards according to IoD data.
This evidence, which will be submitted to the government, challenges a central claim made by some UK banks last week in the wake of the critical Public Accounts Committee report, that where demand exists for bank finance the majority of that demand is being met.
In the survey of 1,045 directors, a quarter said that they had tried to access finance from the institutions that they banked with in 2009/10. Of this quarter, 57% of directors said that their application for finance had been rejected by their bank. This evidence contradicts claims being made by the banks that the majority of lending demand is being met.