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One in three businesses overturn loan rejections
More than one in three SMEs have been successful in overturning loan rejections by using a new appeal process that came into operation earlier this year.
As part of the 'Project Merlin' agreement between the Government and high street banks to promote lending to small businesses, companies with fewer than 10 employees are able to request a second opinion if they think they have been unfairly denied a loan.
According to Professor Russel Griggs, who leads the appeals system's team of independent reviewers, 37 per cent of requests made since the scheme launched have successfully reversed the decision to reject a credit application.
Prof Griggs commented: "One of the issues we have at the volume end is with credit scoring. You can go in with the best business plan in the world but if you have a bad credit record you won't get any money it's you being judged, not the business."
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