Challenges for Smaller Defence Firms
Despite banks in Europe re-engaging with the defence industry, smaller companies in defence supply chains continue to face difficulties in accessing banking services, with those in the UK being particularly vocal about their complaints.
According to Nick Ames, chief executive at Supacat, a British manufacturer of military vehicles, many defence businesses have historically survived without significant support from the banking sector, relying on "blood, sweat and tears" instead.
There was a time when I was lobbying the Ministry of Defence, saying: 'If you really want a strong industrial base behind you, you need to be thinking about a defence bank because if we’re having trouble [accessing banking services], I just can’t imagine what it is like for businesses who make what I refer to as pointy things.
Lenders cite policy uncertainty as a major challenge, despite a decrease in reputational risk.
- Smaller defence firms face hurdles in accessing banking services
- UK companies are among the most vocal about their complaints
- Policymakers are urged to consider a defence bank to support the industry
Author's summary: Smaller defence firms struggle to access banking services.