Call for evidence from SME Alliance.

Hi all,

Further to the blog on our site about Call for evidence from the EU Commission regarding insolvency and business failure, I wonder if any members who don’t want to go through the lengthy process of completing the whole document, would be happy to contribute to a collective one? The more examples we can give the Commission of how the entire process is being manipulated by misconduct in the financial industry, the better.

In particular I am trying to evidence how abuse by elements of the financial sector followed by the complicity of elements of the IP sector are the key causes of insolvency – and the Commission must look at this if it is to find the best ways forward. On the face of it many of the recommendations seem positive but for the big pink elephant in the document which the Commission appears to ignore – i.e Why do so many SMEs end up insolvent and in administration after banks impose financial products and restructuring policies on them?

So if those members who have direct experience of banks first destabilising their business, then using the so called ‘restructuring’ process before finally handing the businesses over to IPs who, in some cases, allow lenders to acquire (some might say steal) SME assets, I would be grateful for your contribution to the submission.

If your business has been the victim of:

GRG

Other so called ‘Restructuring’ divisions of banks

IRHP or other financial products that destabilised  your business including EFG/SFLG

IPs (in your view) collaborating with banks to take your assets

Misconduct by IPs or LPA Receivers

and if you are happy to send a one or maximum two page summary of this, please let me know?

No great rush (don’t want to ruin anyone’s Sunday) but this is a very important opportunity for us to present a clear example of our collective experiences. So I would rather take time and get it right than rush something out and I will let all contributors comment on the document before sending it to the commission. But it would be good to know how many examples we can give. So please get back to me if you are happy to contribute and please send your summary over the next week if possible.

If you would rather submit your own evidence, here’s the link again:

Click to access Call_for_evidence_on_European_Commission_Recommendation_on_a_new_approach_to_business_failure_and_insolvency.pdf

For anyone reading this who isn’t a member of SME Alliance but also wants to contribute, please do join us and become a member. http://www.smealliance.org/join-us.html Add your voice to getting a level playing field for SMEs.

Many thanks

Nikki

Better banking is the way forward!

Strange as it may seem for someone who has been a fierce critic of the UK banking system for some time, yesterday I went to join in the celebrations of a new bank branch. Metro Bank, Cambridge, opened it’s doors to the public and Laura and I went along to be greeted by a lady on stilts, Metro man himself, tea, coffee, free boxes of popcorn and even a free manicure if we wanted one. Of course none of those are reasons to open a bank account but I do wonder what the other banks make of this – while they’ve still got their pens chained to the counter and Metro Bank are encouraging customers to take theirs? Frivolous? Maybe? But going into any bank and coming out with a bowl for your dog, a lollipop or popcorn for your kids and a pen or a bag for yourself has got to be better than just coming out with a headache – which is mostly what I’ve got from banks in recent years.

Anyway, we didn’t go for the freebies. There are three reasons why we went: First, SME Alliance banks with Metro Bank so it made sense to meet the managers at the Cambridge branch. Secondly, Metro Bank are very kindly hosting our next meeting on 31st March at their Holborn branch. Third and most importantly, whatever way we look at it, SMEs need banks and funding and in a market place most of our members are sick of (because so many of us have been stitched up by the big High Street Banks), we need to find a good alternative. Metro Bank seem keen to fit that bill and, at the very least, they are talking to us about what SMEs need.

Not that they have that much choice. Rather unfairly perhaps, and having introduced myself to the manager of the new Cambridge branch, I launched into a very one sided conversation about how unfairly SMEs are treated by banks and what we need from a new bank. It didn’t seem to phase him and he immediately suggested he would also come to the meeting on 31st March so we could discuss it more and look at ways we could collaborate. That’s two senior managers and the founder, Vernon Hill, who have now made that offer. So it will be really interesting to see how we can progress that after our meeting on 31st.

I’m not saying Metro Bank are the answer to SME prayers – I hope they will be but how would I know? I’m just saying it’s encouraging to find a bank that is prepared to talk about SME issues and most of all, listen to us. And if one bank is prepared to listen and that results in a good alternative for SMEs – and if that results in Metro Bank getting SME custom, maybe, just maybe, the big banks will start considering the possibility that treating customers fairly is a good way forward? And by the way Lloyds, RBS, Natwest et al, that doesn’t mean you can just give us a free pen or that we will fall for the “we think that people who give more should get more,” or worse still, the “Goodbye to unfair banking” nonsense. That’s kind of like admitting you were giving us bad banking in the first place! What were your PR people thinking?

I don’t imagine for one minute Metro Bank will ask us what SME Alliance members want and then just hand it to us on a plate. Ultimately banks are there to make money and Metro Bank will be no exception – but hopefully they won’t want to make it in the “we’re here to bleed our customers dry” method that’s become so prevalent. I know, my unusual burst of enthusiasm re banking will be met with some cynicism and one colleague asked me today if I’ve suddenly gone over to the dark side?! No – I’m fully aware the proof of the pudding is in the eating – but it is a novel and encouraging thought that any bank would discuss the needs of SMEs with an SME organisation. I’m looking forward to the meeting and if any of our members are looking for funding, it would be a good idea to come and hear what Metro Bank are offering.