Don’t bank on quick fix to lending drought

13 january 2013

 

BEN WHITAKER has been “utterly underwhelmed” by the help he has received from the high street banks as he has expanded his business from 5 to 35 staff through the downturn.

The chief executive of Masabi, a mobile technology company that provides smartphone ticketing for about half the train operators in Britain, needed funding when he spun his business out of a consultancy in 2009. None of the high street lenders was willing to help.

“There were all sorts of schemes to try to assist people in getting funding, but while the banks all talked the talk, they would not provide any funds.

“I had to underwrite all the company’s overdrafts as the banks would not extend any credit,” said Whitaker, 34.