Insurance News Archive
Banks urged not to ban loans for pub insurance holders
Written by Judith Stevenson
Banks are being urged to continue lending to pub and restaurant insurance policyholders following fears that they may be imposing blanket bans on loans to these businesses.
The Forum of Private Business (FPB) has made the call after Liberal Democrat MP Greg Mulholland raised the issue in a Commons debate today.
It is concerned that the pub and restaurant insurance policyholders may have been classed as high-risk customers by certain lenders and is asking banks to look at businesses on a case-by-case basis.
"Most of these restaurant and pub businesses are viable and will survive but need help over the next few months," said Noel Guilford, national chairman of the FPB.
He urged the government to intervene, saying the organisation has evidence that blanket bans on lending to the sector have been implemented.
Last week, the organisation warned commercial insurance policyholders that the predicted swine flu pandemic could cost businesses millions of pounds if they do not put in adequate contingency plans.
17 Jul 2009
