The Business Finance Taskforce has appointed external reviewers to monitor the UK’s biggest banks’ commitment to a “fair, prompt and transparent” appeals process for businesses that were declined lending.

As part of its Better Business Finance campaign, Professor Russel Griggs OBE will lead the review team, supported by consultancy firm Promontory. The selections have been backed by the Department for Business, Innovation and Skills and HM Treasury.

Businesses will be able to see how they should be treated when banking with any of the Taskforce banks in newly published Lending Guidelines, available on the individual banks’ websites and http://www.betterbusinessfinance.co.uk. 

Angela Knight, chief executive of the British Banker’s Association, says: “In October 2010 the Business Finance Taskforce agreed to 17 initiatives with the aim of supporting SMEs in the UK. One of the initiatives was to launch a monitored appeals process. The Taskforce banks have committed to a common set of principles in how they operate their individual appeals processes. The agreed principles will help ensure businesses are given the support needed to grow.”

The Forum of Private Business CEO, Phil Orford, adds: “If business owners do not pursue the appeals avenue when their loan applications are denied, it will effectively let the banks off the hook and allow them to say that SMEs are happy with their lending decisions.

“As a result, I would urge all business owners who feel their loan applications have been unfairly turned down to lodge an appeal at the earliest opportunity.”