Finance in Fifteen - How the Relationship Between Banks & SMEs Has Changed

In this episode, David and Trevor take a closer look at how the relationship between banks and small businesses has changed over time, and whether things might finally be shifting again.

They reflect on the fallout from the 2008 financial crisis and how it marked the end of the traditional bank manager relationship, once seen as a trusted partner in a business’s growth and development. What used to be a personal, supportive connection has, for the majority of business owners, turned into something distant and non-transactional.

The conversation explores how today’s banks often feel disengaged, especially for businesses with turnover under c.£5 million, many of which now operate with little to no meaningful contact from their bank. David and Trevor also discuss the lingering issue of security held against businesses, sometimes tied to lending that is largely reduce or repaid.

But it’s not all negative. There are early signs of change. Drawing on insights from member of The Guild of Business Finance Professionals, they talk about a renewed appetite among some banks to support smaller businesses, especially when the right match is found on both sides.

They wrap up by asking the big question: could we see a return to trust, stronger relationships, and better access to funding via the high street banks again? And if so, what would that mean for the future of small businesses and the wider UK economy?

A thoughtful discussion for any business owner wondering where they stand with their bank today.