The Forum of Private Business (FPB) states that if a small business feels its application for finance has been unfairly rejected it should take advantage of the appeals process. It has been reported that 49% of small business loan and overdraft applications since January 2012 have been refused.
Small businesses with a group turnover of up to £25m have been able to appeal a negative funding decision for any reason since April 2011.
The British Bankers Association states that 39.5% of rejected funding applications have been overturned in the first year of the appeals process being available.
Many small businesses do not know that there is an appeals process.
Phil Orford of the FPB said: “It is important to shout it from the rooftops that there is an appeals process, that it works and that small businesses who feel aggrieved should use it.”
By commercial litigation solicitor, Nicola Whittle