15:41 20 October 2012
Rolls-Royce presumably aren’t very happy with the fact that hundreds and thousands of their suppliers are having a hard time getting loans from financial institutions. Yesterday, the blue chip company launched blistering attacks on the banks as they are now reportedly forced to lend money to suppliers to keep the company afloat.
Rolls-Royce place more than £60billion in orders to many small companies, which supply vital parts and services for the company to deliver world-class engines.
However, it is understood that most of these small businesses are starved of credit by their banks. Because of this, Rolls-Royce is now being forced to loan the money to ensure that the “food chain” will continue rolling.
A body from the giant company said in a statement: “Since the crisis we have seen a consistent contraction of bank lending to the real economy. We have a full order book but we rely on suppliers so we can provide our goods to customers. Our suppliers rely on banks to supply credit.”
The statement continued: “Strong order books are surely a sign that a business is geared for success. How can banks turn a blind eye to this?”
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