UK's leading banks say lending to pubs is not a problem

The UK's biggest banks have sought to reassure licensees there was no policy of 'not lending to the on-trade'.

As the row over bankers' bonuses rumbled on, and with the government slapping an £800m levy on the banking sector, the UK's leading banks last week confirmed they would make £76bn of new money available for small and medium-sized enterprises, up from the £66bn they lent in 2010.

But licensees contacting The Publican​ remained worried that when seeking a loan they were being penalised for operating in an industry that is suffering more than most in the UK economy.

One, who asked to remain anonymous, said he approached his bank, HSBC, for an overdraft extension to help pay some bills through a quiet trading period.

"We were told not to waste the bank's time, as it was very unlikely our request would be granted due to the sector we were in," he said.

The licensee added that a member of staff at HSBC's Business Telephone Banking had made it clear that his account history was satisfactory, rather it was a "matter of policy".

However, when contacted by The Publican,​ the big five banks - HSBC, RBS, LloydsTSB, Barclays and Santander - all said they were committed to lending to small businesses and harboured no prejudices against the pub trade or another other any business sector.

A spokesman for HSBC said it supported "strong, viable businesses" in all sectors and considered lending requests on a case-by-case basis.

"We consider a range of issues such as the experience of the management team, the track record of the business and the amount they wish to borrow. We also consider the businesses plans for future development," he added.

A Barclays spokesman said that last year the bank had increased lending to small businesses by 14 per cent.

"When we lend, we do so after looking at the individual virtues of the business and its application, not at the industry itself," he said.

Both RBS and LloydsTSB said they looked at the viability of the applicant, plus the quality of any business plan submitted, while Santander - formerly Abbey National - said it would consider any applications from the pub sector, "assessing propositions in line with our lending criteria".