Throw us a lifeline plea to banks from Islington businesses
Forum told struggling firms are collapsing due to lack of loans
Published: 10th June, 2011
by PETER GRUNER
A LEADING figure in Finsbury Park’s business community appealed to the big high street banks this week to throw a lifeline to firms struggling in the recession.
Courtney Bailey, chairman of Finsbury Park Business Forum, said that at least a dozen small firms and shops have collapsed in recent months due to lack of funding and being unable to obtain bridging loans from the major banks.
The situation is so serious – with more cash-strapped firms threatened with closure, resulting in redundancies – that senior officials from the banks are being summoned to a meeting of the forum within the next few weeks.
Speaking at the forum’s new offices opposite Finsbury Park station, Mr Courtney said: “We’ve had several meetings with bank representatives who have always been very sympathetic to the needs of small businesses.
“They want to offer cash but are often overruled by bank executives higher up the chain of command.”
Mr Bailey added that he is regularly being told by bank staff that the money for loans is available. “The reality is that it is just not coming through in time for firms who are struggling with debt and many are going under.”
A part-time church warden and charity fundraiser, Mr Courtney runs an energy business employing 25 staff. He believes that the banks are being very short-sighted and may eventually miss out in more prosperous times.
He said: “Banks are turning down loyal customers at a time when financial support is desperately needed.
“My message to the banks is: look towards the future. Things hopefully will improve but if the high street banks don’t want to help out when times are bad why should businesses want to give them custom when times are good?”
Chief executive of Islington Chamber of Commerce, Ronke Lawal, said that getting loans was a enormous problem. “In Camden Passage, where traders are struggling with massive new rent and business rate increases, the banks won’t give them a loan.”
Talal Karim, chief executive of the social enterprise board, FinFuture, in Seven Sisters Road, said his organisation holds one-to-one sessions between traders and officials from Lloyds TSB bank.
“Lloyds have been very helpful and many traders have benefited,” said Mr Karim. “We now want the other big banks to come on board.”
Chairman of the Fonthill Road Traders’ Association, Selim Gozubuyukoglu, said many businesses were walking a financial tightrope.
“With the banks refusing to lend us money, we are having to borrow on our credit cards.
“As a result people are getting into terrible debt and now credit cards are being taken away.”
Traders in Finsbury Park held several meetings with bank officials two years ago as reported in the Islington Tribune.
They were assured then that loans would be made more available.