RBS courts SMEs with press campaign

by Gill Montia

Story link: RBS courts SMEs with press campaign

This week will see the launch of a Royal Bank of Scotland (RBS) press campaign aimed at small business customers.

The 70% state-owned bank wants to reach out to SMEs who are struggling to secure finance.

In the process of accepting government support, RBS agreed to make an extra £16 billion of lending available in the UK, plus a further £1 billion specifically for small businesses, as part of the Government’s Working Capital Scheme.

However, RBS and other UK banks have continued to be criticised by trade bodies, ministers and the press for starving SMEs of finance, or imposing unreasonable terms.

According to reports, RBS is behind in its agreed lending targets but is trying to convince ministers that it is accepting the bulk of credit applications from business customers.

The bank is therefore arguing that the targets have been missed because of a fall in demand, as commercial borrowers tighten their belts in the recession.