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Lloyds plans early intervention for struggling SME borrowers
SMALL firms which are struggling to grow will be offered guidance on how to improve by Lloyds, the bank announced yesterday.
Lloyds was forced to step up debt restructurings in the recession as firms failed to pay their bills.
But now the bank hopes earlier intervention can help firms grow and avoid restructurings down the line, saving the bank time and money in the longer term.
“It is possible to prevent another economic catastrophe and job loss if these zombie companies are tackled, rather than left to eventually become insolvent at an alarming rate,” said Christine Elliott from the Institute for Turnaround. “Lloyds should be applauded for making practical expertise available to SMEs.”