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| Mistrust between banks and businesses 'still exists' |
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| Latest Recruitment News - HR and Recruitment Legislation News |
| Written by DirectNews Feed |
| Friday, 18 November 2011 00:00 |
 A feeling of mistrust between firms such as London recruitment agencies and banks may be hampering the UK's wider economic recovery.That is according to John Longworth, director general of the British Chambers of Commerce (BCC), who believes that businesses and financiers are not working closely enough together in the aftermath of the recession. Mr Longworth explained that demand for finance from companies is falling in line with the general economic pattern, but added it is "quite clear" that "relationships between some small and medium-sized businesses and banks are fractious". He went on to indicate that many organisations are currently discouraged from pursuing funding on the basis of an assumption they will be refused. With this in mind, he added that changes need to be made to the system if business lending is going to pick up and drive the country's financial rejuvenation. Recently, Andrew Cave of the Federation of Small Businesses indicated that the bar set for financiers involved in the Project Merlin initiative was "too low". Posted by Daniel Frost 
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