Entrepreneur Tells SME's To Voice Their Dissatisfaction With Banks By Voting With Their Feet

The UK needs alternative solutions for SME funding, he says

by Nick Stolberg

(PR For Less and WireNews+Co) - London, England - 19 October 2011

The previous few years have been a rocky road for the UK’s banks, their credibility dented and the public’s trust in them mired. UK SMEs have felt the effects of the stumbles in the banking industry more than most, with bank lending to the SME sector becoming especially restrained in an economic environment that has heightened the need for working capital to support day to day business operations. However, although generally failing to meet the credit needs of SMEs the big 4 UK banks still manage to retain nearly 80% of all SME accounts. For one finance-savvy businessman, the status quo isn’t good enough and he is urging small businesses to take action and voice their dissatisfaction by turning to new, more innovative services.

Nasir Zubairi, Managing Director of EuroTRX, feels strongly about his mission:

“There are other options for SME funding outside the scope of the banks. The legacy banks are not incentivized to lend to SMEs’ and the situation going forward is not likely to get better, with changes to the banking system and bank capital requirements proposed under the Vickers Report and the Basel III directive, only serving to further dis-incentivize lending to SMEs. The Government, with neither Project Merlin nor The Enterprise Finance Guarantee Scheme, have failed to help the situation. The latest proposals for Credit Easing (CE) will not solve the issue; SMEs do not need to borrow nor can they afford to borrow the hundreds of thousands that make SME bonds cost effective. The purchasing of securitized SME loan portfolio’s by the government presents the same moral hazard that got our economy into this mess in the first place”, he says.

Zubairi continues “Businesses should not be afraid to take control, embrace alternative funding solutions and vote with their feet. The banking sector is creaking and the impact is being felt most strongly by small and medium size business during a period when these businesses are edging closer and closer to liquidation. The plight of SMEs can be addressed, but requires their cooperation. Barriers to change service provider are not as high as some may think, and the benefits will quickly materialize. These businesses are critical to stimulating growth in our economy and we need them, as consumers, to drive change to get this country going again.”

Nasir is of course, correct. It’s no hidden fact that all of the power still lies in the hands of the banks. Many experts, including Nasir, are frustrated at the Government and Medias’ obsessive focus on ‘fixing the banks’, while the actual focus should be a lot broader – on how the financial services sector as a whole can work more effectively to meet business and individual consumer needs.

The actual solution could lie in the hands – or feet – of you and I. As Nasir Zubairi contests, we simply cannot put up with it any longer:

“All of us, especially SME’s, must act to receive better services from a new breed of innovative financial solution providers that better meet consumer needs in terms of access, cost, transparency, flexibility, sustainability and support.”

About Nasir Zubairi and EuroTRX

Having worked in the finance sector for many years, Nasir Zubairi chose to leave his banking job to focus his efforts on positively disrupting the finance industry by bringing his vision of better service for SMEs to life. The EuroTRX proposition seeks to allow SME’s to access to new, cheaper sources of funding, helping make the industry more competitive and SMEs less reliant solely on the banks.

Nasir understands the importance of capital to smaller business – and is working hard with EuroTRX to help every client get exactly what they need, on their terms.