Personal guarantees for UK business loans need 'proper' probe, regulator told
( January 14, 2025, 11:01 GMT | Official Statement) -- MLex Summary: The UK’s financial services regulator has been asked to dig deeper into the “blanket use” by banks of personal guarantees for small business loans. In a letter to the Financial Conduct Authority's chief executive, Nikhil Rathi, the Federation of Small Businesses described the requirement by lenders as a huge growth barrier for detering company directors from taking on debt to invest in their businesses. The FSB first complained about the issue in late 2023, and the FCA has been investigating. The lobby group's latest comment comes as it has written to a series of regulators to contribute ideas to feed into the government’s growth agenda.Letter attached. ...
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