A fifth of small and medium-sized builders have been refused an extension to their overdraft in the past 12 months, despite government attempts to improve the availability of credit

A survey carried out by the National Federation of Builders (NFB) shows widespread discontent among the body鈥檚 members at their treatment by the banking sector.

A third of those surveyed said they were dissatisfied with their bank and 40% said their relationship had deteriorated in the past year. The NFB said these statistics were worrying given that 53% of firms said their relationship with their lender would be 鈥渧ery important鈥 to success over the coming year.

The federation said sound businesses were being refused capital because they were in the construction industry.

Others complained about harsh terms. Almost 30% said interest rates had increased on their credit facilities and 22% said their bank had failed to pass on a base rate cut in the past year.

The NFB warned that conditions would be 鈥渇ar worse鈥 in 2010 and called on the government to 鈥渟tep in where the banks were failing鈥.


Julia Evans, the NFB鈥檚 chief executive, said: 鈥淢any companies are going to the wall because construction is deemed too risky by lenders who are failing to lend, or even to pass on rate cuts.

鈥淲e would like to see more money being made available to SMEs using routes outside the banking sector, bypassing the banks that have chosen to close the book on builders.鈥

One of the firms surveyed, Yorkshire-based John Brooke Builders, said it had been trying to negotiate an agreement about its facilities for seven months with no success.

In a letter to Royal Bank of Scotland, seen by 精东影视, senior partner John Brooke said he was 鈥渁ppalled鈥 at its treatment of the firm. He said: 鈥淲e鈥檙e just the sort of business I believe the government would expect the bailed out banks to be helping.鈥