Fury at banks' 'anti-pub policy'
Angry licensees have slated major high-street banks for saying that they won't lend to pubs.
The MA has been inundated with messages from hosts who say they have been turned down for credit, claiming that banks have told them it's their policy not to offer finance to pubs.
This is despite the Government's multi-billion pound banking bail-out, which the Treasury said required from banks a "full commitment to support lending to small businesses". It also comes at a time when Punch, for example, is extending its pub sale offer to all its outlets.
Licensee Ray Bispham said he had banked with LloydsTSB for 15 years, and about two months ago his bank manager said no, "'a decision made at the top' meant he could not offer me any overdraft or loans".
Bispham, of the Jolly Tar in Nantwich, Cheshire, said his bank manager told him the bank "was not lending to any pubs due to the crisis in which most of them find themselves", with nine out of 10 pubs in his patch in debt or about to close.
Worcestershire host Grahame Bunn said he asked for a £1,000 overdraft with NatWest, now part of the Royal Bank of Scotland (RBS) group. "The manager said they have a 'traffic-light system' for lending money and pubs come up bright red!" said the Enterprise tenant of the Kings Head, Upton-upon-Severn.
Tony Eaves, freehold licensee of the Black Swan in Homersfield, Suffolk, said: "We called in to HSBC to ask for a £10,000 loan over the winter and they said they were not lending to pubs and hotels. I've got no problem being turned down; I know banks have to tighten their belts. What gets me is the fact that banks are not lending to pubs, full stop."
A Cambridgeshire licensee, who asked not to be named, said she approached Yorkshire Bank after being turned down by HSBC.
"The answer was that they would not now be able to lend any money to anyone in the public-house sector. A point blank no, despite us regularly making our current loan repayments on time."
Last week Santander, which owns Alliance & Leicester, apologised to Suffolk host Bella Aldred for denying her an overdraft and reportedly saying it doesn't lend to pubs.
The bank said it judges each case on its merits, but more licensees have said they've been told the same thing as Aldred.
Wadworth tenant Nicky Wragg, of the Green Dragon in Market Lavington, Wiltshire, said: "We need an overdraft facility, but when we applied [to Alliance & Leicester] we were told it was not available to pubs, unless they were freehold."
MA readers wrong say banks: we don't blacklist pubs
Major banks deny they have a policy of not lending to pubs.
An RBS spokeswoman said: "We are supporting a full range of customers and sectors, including the pub and leisure sector. Each deal is reviewed on a case-by-case basis.
"If a company ticks the boxes of having a strong business model and management team, and the funding request makes sense, we'll support it."
HSBC said: "We don't have a blanket ban. We are still lending [to pubs]."
Yorkshire Bank said: "We don't have a policy of not lending to specific sectors. We look at the individual business and if it's a good business, we will lend, and if not we won't."
Lloyds said: "We lend to all viable businesses and don't have a policy of turning down loans to pubs."
Tell us about the bankers
The Morning Advertiser is urging licensees to get in touch if their bank says it won't lend to pubs — so we can put pressure on the Government to intervene.
The MA believes the Government should force those banks bailed out by the taxpayer to fulfil promises to offer finance to small firms.
Contact us by emailing wbua.uneevatgba@jvyyvnz-errq.pb.hx, describing your experience and including details of your pub. We'll put your case directly to the Government — and ask what they will do about it.
