Banks promise to help business through bad times

At this afternoon's meeting with business leaders, hosted by trade minister Lord Mandelson, the BBA will set out the 10 promises banks are making to their business customers. The BBA will also explain the work already underway with business groups to review the BBA's Statement of Principles for business banking and set out the changes made to the latest edition of the Business Banking Code, published in March this year.

BBA Chief Executive Angela Knight said the aim was to ensure everyone pulled together to build up the strength of businesses to help them fight their way through the current tough economic conditions.

Mrs Knight said:

"The UK's banks want to see their customers flourish even in these testing times. We are determined to help our customers make the most of their businesses and part of that is to ensure they have access to finance as well as independent advice and help when times are tough. Businesses with good ideas need to be reassured that banks are listening and are working actively with them. Armed with these promises, Britain's entrepreneurs can confidently speak frankly with their banks about their needs and the challenges they face."

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Notes to Editors:

Our promises to small business customers in financial difficulty

The banks are committed to a Statement of Principles which sets out how they deal with their small business customers. These Principles cover both the good times and the bad and, importantly, map out how banks and their customers can work together to overcome financial difficulties.

Under the Banking Code we restate our promise to treat small businesses sympathetically and positively if they face financial difficulties.

We will:

• maintain competitively-priced lending and promote it actively
• help you by getting to know your business - this means we will ask for financial information, such as your company accounts, business plan and cash-flow forecasts
• speak to you in plain language and in the way you want - for instance by telephone, email or letter - whichever you prefer
• confirm the conditions of any arrangement, loan or guarantee with you in writing
• recommend you get independent advice before borrowing from us
• provide, on request, information about where you can get independent financial advice
• explain - if you want and in writing if you ask - why we turn you down for a loan
• get in touch with you in good time if we see you heading towards financial difficulty
• work with your advisers, if appropriate, to consider the best way forward
• support any rescue plan we believe will succeed.

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