Financial Times FT.com

Small business: Banks ‘failing to give credit where it’s due’

By Jane Bird

Published: June 2 2010 16:26 | Last updated: June 2 2010 16:26

When Phillip Hofmeyr and his colleague Alex Moore needed £100,000 ($144,907) to set up Snagsta, a social recommendation website, their first thought was a bank loan. But the bank was discouraging and wanted personal guarantees.

“We didn’t want to put our homes on the line or pay premium interest rates, so in the end we raised the money from friends and family,” Mr Hofmeyr says.

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