RBS fighting for entrepreneurs’ business in response to pressure from Treasury to meet its lending targets.
Royal Bank of Scotland (RBS) is making efforts to attract more small business customers as it comes under pressure to hit Treasury lending targets.
The bank has said that some of its most experienced business bankers were staffing a ‘business hotline’ to offer potential borrowers advice and potential access to loans.
RBS and Lloyds have committed to lend firms and homeowners £39bn this year.
The move follows reports that said the government felt the banks were asking for "unrealistic" interest rates on their business loans.
While RBS and Lloyds, both of which are part-nationalised, are on track to meet mortgage lending targets, they have said that targets for small firms are tougher because companies are looking to clear debts in the recession.
The Treasury argues that the pricing of loans - rather than a lack of demand - is what’s stopping loans to businesses being approved.
RBS and Lloyds have been reminded they must meet their lending obligations, which were a condition of the taxpayer-funded bail-out.
The chairman of RBS's small business division, Peter Ibbetson, said that opening the hotline represented "part of our aim to be transparent and innovative".
He added that firms would get a dedicated case manager handling calls and emails and a defined timescale for when decisions would be made or advice given.
Ibbetson said that prospective applicants would get a decision within 30 days and the line is open to non-customers.
"Businesses are assured of a fair hearing and, where we have turned down an application previously, a full reinvestigation of the circumstances," he said.
"Sometimes a fresh pair of eyes looking at a case from a different perspective can produce an alternative solution. We are currently approving 85% of loan applications and we're always looking to improve on that figure."
RBS lent £28.6bn to businesses during the first half of the year but net lending was down by £7.3bn as customers paid back more.
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