Loan Protection: Banks Should Form Relationships With Smaller Firms
Banks should form personal relationships with smaller firms in a bid to stimulate the economy, it has been claimed.
- (1888PressRelease) August 21, 2010 -
Last week, the British Banking Association announced that it would set up a taskforce to identify any obstacles smaller businesses may have when attempting to secure finance.
Andrew Cave, head of policy at the Federation of Small Business, claimed that smaller firms will be more prepared to take a risk on investment if they have a good relationship with their bank.
He said: "Coming out of the recession there isn't that understanding and that relationship that will take the level of confidence through to taking that risk.
"Instead of banging on to the banks about access to finance, what we need them to do is return to that older model of actually helping and working with small businesses."
Mr Cave added that better access to finance coupled with improved customer-bank relationships could help promote the recovery.
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