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Positive relations with banks 'can benefit small firms'



It is important that those in the corporate community have a close relationship with their bank, judging by the comments of an expert.

Andrew Cave, head of policy at the Federation of Small Businesses, discussed some of the advantages of traditional forms of banking in comparison with the sort of distance exercised today by customers and their financial advisers.

He said it may be preferable to "return to that older model of actually helping and working with small businesses".

This could inspire confidence among savers and ensure they are well-informed about their financial limitations and targets.

Mr Cave added that it is important to have a "relationship that's based on trust with a person in the bank".

Recently, Stephen Green, chairman of the British Bankers Association, wrote to the chancellor of the exchequer George Osborne in a bid to highlight the ways in which a private sector recovery can involve work to alleviate barriers to small business financing.

Posted by Mark Phillips
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