Banks vow to help small businesses avoid bankruptcy

The British Bankers’ Association (BBA) has pledged to support small businesses through the economic downturn.

It is writing to MPs on behalf of the high street banks to set out action that is being taken in order to help small enterprises avoid bankruptcy.

However, chief executive Angela Knight said that despite the best efforts of the lenders, it is “inevitable” that some firms will not survive.

“The businesses that will succeed through this downturn are those currently reviewing their business plans and engaging with their banks to prepare for a slump,” she remarked.

Ms Knight stated that the BBA’s members are committed to helping small outfits through the slowdown and that banks have always been a “strong supporter” of the sector.

BBA statistics showed that business loan borrowing grew to £44 billion in the 12 months leading up to June 2008.

Meanwhile, the Trades Union Council has welcomed new rules b r ought in by the government that provide more protection for homeowners from repossession.

By Jamie Price