RBS tries to help SMEs in securing their finances

According to reports, Royal Bank of Scotland is conducting a press campaign aimed at small business customers, who are struggling to secure finance.

As part of the Government`s Working Capital Scheme, the 70% state-owned bank agreed to make an extra £16 billion of lending available in the UK, plus a further £1 billion specifically for small businesses. Nevertheless, trade bodies, ministers and the press have continued to criticize RBS and other UK banks for starving SMEs of finance, or imposing unreasonable terms.

RBS is behind in its agreed lending targets but trying to convince ministers that it is accepting the bulk of credit applications from business customers. Therefore, the bank is arguing the targets have been missed because of a fall in demand, as commercial borrowers tighten their belts in the recession.