The FSB is calling for the Government to put in place a corporate mediator to re-establish trust between banks and businesses during the recession. This shows just how great the impasse between businesses and banks has become and how precarious the situation is for the Owner Managed Business dependent on the banks for support.
It is proposed that the mediator could operate through the Regional Development Agencies, to perform the following tasks:
- Act as a point of contact for entrepreneurs and small firms having trouble getting loans or overdrafts
- Facilitate discussion between business and banks
- Mediate in cases where viable businesses cannot get finance
- Report regularly to the Government, identifying trends and offering solutions
A solution that gets the beleaguered banks lending again will have far reaching consequences. It still seems unthinkable that it should take a mediator to make it happen. Trust is earned through transparency and building solid relationships, something that the innovative and supportive independent commercial finance sector has offered consistently throughout the crisis.
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