A banker seeking maximum bank profits will inevitably charge heavier fees on a failing small business. This is because they can rely on personal guarantees or other security for the bank borrowing and  can obtain payment from the individual/s after the small business has failed.

We have worked with a great many small businesses to achieve a ‘turn around’ or for a business ‘rescue’ to be organized. In other cases we have negotiated and minimized the bank’s recovery of personal assets which were previously fully ‘at risk’.

We focus on urgent SME business banking issues so that a business can be ‘turned around’ or rescued, working with the business and it’s owners whilst communicating effectively with the bank. See business articles below:

Sunday Times – Business – How to keep out of trouble with banks – Pressure groups are calling for tougher measures against banks, saying sharp practice, high charges and inflexibility are still hurting small firms says Zoë Brennan. When Chris Vass opened the letter from his bank telling him that a decade after his family business had collapsed, NatWest suggested he sell his home to repay his debt, he says it was like a “hammer – blow”. Now after 13 years the bank is demanding £150,000 in compound interest on the original sum despite repayments of nearly £100,000 by the Vass family. “They said ‘look at the small print of what you signed’,” says Chris Vass, “They were right, I’d said they could charge that interest.” Vass and his wife might be an extreme case of what can go wrong, but the stress Vass is suffering as a result of his dealings with the bank will be familiar to the small business community. Be careful what you sign, particularly regarding borrowing guarantees. “The case of the Vass family – where we are trying to get the bank to see common sense – shows how easily a bank can enforce a signed agreement,” says Eddy Weatherill from the Independent Banking Advisory Service (IBAS), which helps people who run into trouble with banks. “Never trust the phrase, ‘this is just a formality’, or ‘we can change this later’ when signing a document. Get all the facts on the worst case scenario and don’t be rushed into signing something.” Weatherill says: “Banks do lie and cheat.” - Result on this case? We were able to negotiate a settlement with the bank.

Sunday Times Small Business - Banks profit at expense of small firms – The big four have been criticised for taking advantage of inexperienced owner-managers. Eddy Weatherill of Independent Banking Advisory Service (IBAS) says: “Small businesses are an attractive target because they have high security, liquid assets and are here rather than thousands of miles away.” ‘Buyer beware’ should be the phrase used when dealing with any bank on any matter in our opinion.” He suggests that small businesses check their debts, especially those that are repayable on demand. “Ask yourself just how solvent you are if the bank demands its cash within hours because nobody is immune,” says Eddy Weatherill

Where banking is concerned IBAS are more than just an extra 'pair of hands' and we spend our time helping members avoid or overcome  business difficulties. We provide truly independent, impartial banking advice and direct assistance with business help for members with their business and banking, whilst also campaigning on banking issues. email us and tell us how we can help your business now.