The relationship between British businesses and their banks is improving, according to recent research from ICAEW.
The survey, of more than 500 ICAEW members, shows that nearly three quarters (74%) believed their bank understands their business and 93% said that when they applied for loans or renewed overdrafts, their bank said yes.
Many also said they were not interested in moving over to peer-to-peer lending. This, ICAEW says, indicates that businesses prefer traditional routes to finance rather than alternative funding options that are increasingly available.
ICAEW director of business Stephen Ibbotson, said:
“It is reassuring to see that businesses and banks have an improved relationship, given the tales of woe we have heard anecdotally in recent years.
“There are some concerns. Small and micro businesses are still struggling to establish a good relationship with their bank, with nearly a third feeling that they are not understood by their bank. It seems clear that getting good financial advice is critical for those firms if they seek to grow.”
Banks still need to go further to restore confidence among smaller and micro businesses. Smaller firms’ confidence levels have fallen to 59%.
Photo by Chris Isherwood