HSBC reviews leisure business loans
Banking giant HSBC has confirmed it is implementing stricter policies when it comes to extending loans and overdrafts to businesses involved in the hospitality sector.
Yesterday's Daily Telegraph quoted a bank spokesman stating that the bank had "tightened up" its lending criteria to businesses in the pubs, restaurants and bars sector. "We have to look at the prospects of all businesses and unfortunately this is a sector that has experienced some difficulties," a bank press officer reportedly told the newspaper.
When contacted by The Publican, an HSBC spokesman said they bank stood by the statement. "Our lending criteria has tightened," he confirmed, "but this is true across the entire business sector, not just the leisure industry."
However, if you are looking to extend your overdraft or you need a loan to improve your premises, HSBC's competitors seem more willing to help out.
A spokesman for Lloyds TSB said: "Our lending criteria has not changed and we certainly have not applied any brush stroke restrictions to any particular sector. Loans are made on an individual basis depending on the strength of the business plan being put forward and the experience of the management team implementing that plan."
A Barclays spokesman said: "Lending criteria is usually for new or expanding businesses, so I'm not sure that affects too many in the hospitality industry at the moment."
And showing a level of understanding about the licensed trade a Barclays spokesman applauded the industry for the way it has handled the impact of the smoking ban and loss of sales to supermarkets.
"The leisure industry tends to be more savvy and creative when it comes to handling such problems," he said. "When the industry sees a challenge, it rises to it."
