legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

## Investigation Into Bank Demands for Personal Guarantees

LONDON (Reuters) – Britain’s markets regulator will investigate whether small businesses are facing unnecessary barriers to growth because they are increasingly facing bank demands for personal guarantees when they seek loans. The Financial Conduct Authority (FCA) said on Tuesday the Federation of Small Businesses (FSB), a consumer body, had reported that lenders’ growing demand for personal guarantees was hurting small businesses and dissuading them from borrowing.

## Support for Small Businesses

The FCA, which has pledged to support small businesses but whose remit does not include lending to limited companies, promised to remove barriers to growth if necessary. It did not provide further details. Small and medium-sized businesses accounted for three-fifths of the employment and around half of the turnover in Britain’s private sector in 2023, the FSB has said. Small businesses, with fewer than 50 employees, employed 13.1 million last year in companies with a combined turnover of 1.6 trillion pounds ($2.03 trillion).

## Data Collection and Monitoring

The FCA said it would collect data from April to June 2024 to check the number of personal guarantees in place for sole traders and small partnerships borrowing less than 25,000 pounds ($31,713). It will also monitor complaints, review when such guarantees are required and consider whether it needs to consult on and publish guidance.

## AI legalese decoder Solution

The AI legalese decoder can help in this situation by analyzing the legal language in loan agreements and highlighting any clauses related to personal guarantees. By using AI technology, small businesses can better understand the terms and conditions of their loans, ensuring transparency and potentially avoiding unnecessary barriers to growth. This tool can provide valuable insights and recommendations for navigating the complex legal landscape surrounding lending practices, ultimately empowering small businesses to make informed decisions.

## Public Awareness and Government Intervention

Should problems identified fall outside its remit, the FCA said it planned to make these public so that the government could consider whether greater protection should be available to small businesses, which were “vital to the UK economy”. ($1 = 0.7883 pounds) ($1 = 0.7890 pounds) (Reporting by Kirstin Ridley; Editing by Sharon Singleton)

legal-document-to-plain-english-translator/”>Try Free Now: Legalese tool without registration

Find a LOCAL lawyer

Reference link