"Shop around yourself. Don't just delegate it to your accountant because you need to build a relationship with the bank"
Page 43
If you've noticed an error in this article please click here to report it so we can fix it.
Grange emphasises, however, that the bank is not necessarily in the position of greatest strength.
"Some banks are on the back foot," he continues. "They need the small business as much as the small business needs the banks."
Nor should you be afraid to switch. Grange says: "People feel there is something wrong if they go outside the comfort zone and approach another bank. But that bank will not view you with hostility or suspicion."
The 215,000-member Federation of Small Businesses is lobbying banks to loosen up credit. It is making the case through the Small Business Finance Forum, set up by Lord Mandelson, the business minister, for an exchange of views on funding.
A final thought: when shopping around, firms might prefer a specialist bank.For example. Clydesdale has a niche interest in waste and recycling, and the Unity Trust Bank concentrates on clubs and charities. •