Pub threatened by bank's cautious policy

A struggling licensee believes a bank's cautious approach to lending to pubs could see him go out of business.

Gerry Hall, who runs freehouse pub the Champion of Wales, in Appledore, North Devon, recently approached HSBC for an overdraft after takings at the pub dwindled.

The 71-year-old was turned down and claims bank staff told him HSBC is not lending to any pubs.

The bank has refuted the claim but, as the credit crunch bites, admits it has adopted a "generally conservative approach to lending."

Gerry, who took over the pub two years ago after retiring as an engineer, said: "I was told they will not lend money to pubs, clubs or restaurants because these businesses are vulnerable.

"I have been with HSBC 40 years and just wish they would treat me as an individual rather than as part of a trade that is facing difficult times.

"It will put me in jeopardy and I am faced with the prospect of going bankrupt."

A spokeswoman for HSBC said: "HSBC does not have a blanket ban on lending to hotels, pubs, clubs or restaurants, however the bank is now taking a more cautious approach to lending in this sector.

"Lending will only be granted to well established and profitable businesses.

"The revised policy is in no way a reflection on the individual customer's financial circumstances, but of HSBC's generally conservative approach to lending, and is a decision made by the bank for all businesses operating in this sector."