Derby businessman fuming over rate hikes

Monday, December 29, 2008

A businessman has been left incensed after banks refused to lend to him for less than 20.5 per cent.

A Derby businessman has accused high street banks of "acting like Scrooge" by asking him for rates of up to 20.5 per cent on a loan for his business.

Thisisderbyshire.co.uk has reported that Paul Wood has lambasted the banking community after he claimed that recent reductions in the Bank of England base rate are having little effect on lenders and the cuts are not being passed on to small firms.

He told the newspaper: "It is no wonder that cash is not flowing in the economy. Unless the banks lower their rates and make it easier to borrow money, then the deeper the credit crisis will get."

Mr Wood made his feelings known following a recent meeting with his bank manager at Barclays where he was told that the most favourable rate that he would be offered on a business loan of £25,000 would be at a rate of 20.5 per cent.

Meanwhile, the Confederation of British Industry recently warned that plans to increase business rates in the UK will hit firms hard at a time when they are already struggling due to the prevailing unfavourable economic conditions.

Source: ask-re The Property People LLP