The FSB has been campaigning for a corporate mediator to act as a go-between for high street banks and small businesses on lending issues and it is now hoped that Sir Alan Sugar can use his role to restore trust and confidence between small businesses and their lenders and ultimately help kick-start the economy.
A recent FSB poll revealed that more than 70 per cent of FSB members thought a corporate mediator would help build better relations between banks and small businesses.
The inclusion of prompt payment in his brief is also welcome as this is another big issue impacting on cash-flow.
John Wright, Federation of Small Businesses National Chairman said: "We welcome Sir Alan to his new role and are very pleased the Government has heard our concerns over bank lending. The appointment of enterprise champion Sir Alan, with his stature and no-nonsense approach, should help compel the banks to lend fairly to viable small firms.
"Small businesses thrive on personal and direct relationships but their dealings with the bank manager deteriorated over the last year with increases in the cost of finance and firms being denied new credit. We look forward to working with Sir Alan to help him break down the barriers which have made it so hard for viable new and existing businesses to gain vital loans and overdrafts to help them survive and grow."
