Apprentice star Sir Alan Sugar sparked fury at a meeting with entrepreneurs in Manchester this week by slamming struggling business bosses as “moaners” who “live in Disneyland”.
The 62-year-old peer - the Government’s Enterprise Champion - also claimed 85 per cent of small firms refused bank loans weren’t worth lending to. He insisted what many firms needed was not a bank - but an insolvency practitioner.
The tycoon - worth an estimated £730million - launched his astonishing eight-minute rant after one delegate told him four banks refused to lend him £20,000 to help supply paint to hospital wards because of “cash-flow” difficulties. He said: “I hate the use of the word cash-flow in the sense that it is a business problem.”
“Banks are there to do business. Anyone who says they are not are wrong. I can honestly say a lot of problems you hear from people who are moaning are from companies I wouldn’t lend a penny to. Regretfully, when we delve into some examples of the companies that have gone to the banks saying ‘lend me some money’, I wouldn’t lend them a penny. They are bust and don’t need the bank - they need an insolvency practitioner.”
“I would look you right in the eye and tell you out of 100 complaints, on investigation, I would say 15 of them had something to moan about.”
He added: “The problem is that some younger people who have lived through the last 10 years or so of business think the irresponsible manner in which the banks dealt is the norm. Let me tell you, you have lived in the unrealistic Disneyworld in the way banks dished out money.”
The tycoon’s remarks provoked outrage at the questions session. One delegate remarked: “There could have been a bit more enthusiasm here. There’s been lot of negativity.”
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1 comment so far
1 wayne sharpe // Nov 5, 2009 at 11:08 am
this is outrageous. the very REASON so many SME’s are insovlent is beacuse of heinous acts of corproate terrorism by banks agains people who cannot defend themselves. Credit withdrawn and/or refused, interst ratees trebels on loans, speacial penalty fees for overdrafts (risk fees), division set up too close ‘doubtfull business’ accounts, credit card facilities withdrawn, lending margins reduced… the list goes on. SME’s are the backbone of this nation. Sugar isa moron who is clealry too busy sucking up to big business and big banks.In an SME these people have ALL thier assets tied to their busienss- if it faisl they lose their entire life and the busienss will be dead forever.and THEY built the banks- not the other way round.