Succumb to Merlin’s spell

Until this changes, banks' ambitions to do more business with SME manufacturers will remain just as fictitious, WM's finance summit heard last month. Businesses find the decline of local bank managers and the rise of personal guarantees galling. They're also struggling to believe financiers' renewed fondness for factories after decades in the banking backwaters. At the event, manufacturing bosses shook their heads in bewilderment as banking chiefs waxed lyrical about their industrial intent. Yet the message was loud and clear. Manufacturing is, as one banker put, it a "sweet spot" for the City. Investment capital is available for businesses that can construct a professional business case. Approval rates stand at over 80%, say financiers, with high street banks claiming increases of 15% or more in lending to manufacturers. The figures are astounding – these glowing results have been achieved despite widespread antipathy towards the banks. Just imagine if the relationship been stronger... Communication with the City is undoubtedly poor. Ten months in to Project Merlin and it's appalling that manufacturers still pinch themselves at the prospect of banks wanting to lend. The banks have to shoulder some blame for failing to get the message across. However it's also down to us to go on the front foot and engage with financiers. WM's summit certainly built some bridges: financiers had a real wake-up call to the disillusionment caused by the demise of local bank managers, and manufacturers realised that banks' intent to lend goes beyond platitudes. We must seize this opportunity and cash in on the new-found entente cordiale. The real magic behind a more profitable partnership starts by sitting down and talking shop. Item number one on the agenda? Bring back Mr Black to put both sides back in the black.