HSBC tightens lending for pubs
Britain's pub operators face an even tougher time after HSBC decided to tighten its lending to the leisure sector.
According to the Sunday Telegraph, HSBC views the leisure sector as an increasingly risky one because of rising costs, the smoking ban and the credit crunch. It said that it had "tightened up" its lending criteria to businesses in the sector.
The bank said it was still open for business but that lending and overdrafts would depend on individual circumstances.
The paper cites the example of Geoff Monks who claimed he could "not get the overdraft of an 18-year-old" after opening a hotel in the Channel Islands.
HSBC told the Telegraph: "We are still open for business. We have tightened up our lending criteria in [the leisure] area and it will depend on individual circumstances. We have to look at the prospects of all businesses and unfortunately this is a sector that has experienced some difficulties."
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