Recent additions to that list would be those banks demanding collateral before they will release government funded support for business
Pretty sure there is more to it than that. I work for one of them and my understanding is that the legal debts view is that the gov guarantee only kicks in once everything that can be realised as Collateral has been. Not an expert on this though, just what I have heard.
Nope, the whole thing stinks. Above market rates and full personal guarantees from the likes of Barclays. It shows that the banks have no interest other than their own*. As long as the business was viable and the businesses liquidatable assets likely total more than 20% of the debt there’s no good reason for a bank to demand either a high rate or a personal guarantee from the directors but they’re still doing it. For businesses with debt already its compicated, but for most small businesses that are relatively debt free a loan of say 25k should be a box ticking exercise.
Looks like the Govt is going to step in and clean it up though.
* There’s 40 odd banks that participate in Business Bank schemes, its probably unfair to damn them all, some may be doing the right thing.