Unlike retail banking the SME sector is almost totally unregulated.
Lord Cromwell, Chairman of the APPG on fair banking has described this as a major concern for the UK as its having a far-reaching and very damaging impact on the British economy.
Over the past 20 years tens of thousands of UK businesses have been destroyed by an orchestrated asset stripping campaign conducted by almost all the major banks.
Businesses entered into financial arrangements with their bankers in the belief that these professionals could be trusted and would have their best interests at heart.
After all- surely banks are there to support businesses and allow them to grow more quickly by making additional funds available?
As we now know from the horrific stories emerging about criminality in HBOS, and alleged criminality in banks such as RBS and Lloyds, successful businesses, built up over many years by honest hard-working men and women were systematically plundered in the name of banking profits,dividends and banker bonuses.
This is an industry which unilaterally shows utter contempt for business people who are not warned about the inherent dangers associated with the products peddled by unscrupulous individuals.
However, big changes are afoot and the SME sector may well soon be rightfully protected with banks forced to include ” health warnings” on all their business products.
We have been invited to promote a new dynamic consumer campaign which will ensure that any business person seeking financial support from a UK bank will understand all of the consequences of the agreements they enter into.
Until such protection is in place we offer the following warning to all SMEs:
“YOUR BANK HAS THE RIGHT, AND
INTENTION, TO SUPPORT THE GROWTH OF YOUR BUSINESS
UNTIL THE POINT WHERE THEY CAN GRAB YOUR HARD
EARNED MONEY AND SEIZE ALL YOUR ASSETS AND LEAVE
YOUR LIFE IN RUINS AND THERE’S NOTHING YOU CAN DO
TO STOP THEM”