SMALL businesses in Lancashire have hit back against the banks with the launch of their own credit union - the first of its kind in the country.

The new initiative will operate like a bank for savings and loans and organisers claim it will offer better rates than High Street lenders.

"Normally, credit unions are based in communities or the workplace, but ours is unique in the UK in that it is specifically for anyone in the region who is self-employed or running a small business," said John Curwen, chairman of the Lancashire & Cumbria Federation of Small Businesses.

And the federation said that complaints from members about banks was the motivation behind launching the new credit union.

"For many years the self-employed and small business owners have complained at the way banks have treated them," said treasurer Neil Daws.

Members of the new union must save a minimum of £10 a month to be part of the scheme.

"We have a potential membership of more than 3,000 in our region and we are confident that the credit union will be of great benefit to small businesses," said Mr Curwen.

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