The majority of UK entrepreneurs enjoy a good relationship with their banks, with over three-quarters experiencing no problems in raising finance for ventures, a new poll has revealed.
In a survey of its members, the Institute of Directors (IoD) found that 69 per cent felt they had a good relationship with their banks, with just five per cent admitting they were unhappy with the service they receive.
Over three-quarters said that they had no problems in raising finance with banks, still the main source of funding for startup businesses in the UK.
Entrepreneurs were generally loyal to their banks, with 44 per cent of IoD businesses sticking with their account provider for over ten years. A further 20 said they had been with their bank for between five and ten years.
The Royal Bank of Scotland group, which includes RBS, Natwest and Ulster Bank, was the most popular among those surveyed, with 27 per cent banking with the group.
Barclays were second most popular with 23 per cent, while 15 per cent of firms banked with HSBC.
The survey makes slightly surprising reading, with previous studies suggesting that most small businesses were unhappy with the level of service and high charges when dealing with banks.
This was despite measures taken by the government last to make banks more pro-small business.
Banks now have to pay interest on business accounts and speed up the process of switching accounts between providers.
Richard Wilson, of the IoD said that for many people in this country, the banks lie somewhere between politicians and estate agents in the popularity stakes.
“However, IoD members recognise the importance of a profitable banking sector and most have a good relationship with their bank.
“The comparative strength of the UK economy and its banking sector means that most IoD members are able to get access to finance to fund their operations and bank-firm relations are good,” he said.
