Rob Cormie: Banks aren't only place to find finance for growth

The difference with this recession is that business owners and managers are aware of other financial options and have more flexibility in terms of where and how to raise new capital. This is possibly a surprising observation given the ongoing high-profile debate and controversy about bank lending and whether banks are "open for business".

Having surveyed medium to large companies in a broad range of sectors across Scotland, it is clear business is confident and looking to raise new capital in 2011. The evidence suggests the majority of business decision makers and owners have an appetite not only to raise new capital and explore emerging growth opportunities, but are also aware of their freedom of choice and ability to switch financial provider in the current market.

Such positive sentiment is to be encouraged given the Scottish economy's reliance on the private sector. This year and next are set to be big years as a wave of refinancing will be required following lending deals that were set up at the height of the financial crisis.

Unfortunately, with many of our banks distracted and preoccupied with responding to government and statutory requirements and pressures, many business owners believe their bank's main focus has moved away from the customer.

In the past, corporate debt was all about relationship banking. However, recent events mean that all important "trusted relationships" have been broken and may never return. Furthermore, a large number of companies have experienced a change in their relationship manager in the past year. We believe owners and decision makers in business will operate in a different way in future and will feel confident to pick and choose in the market, working with the specific suppliers for specific requirements. The value of long-term relationships is not so crucial, with many companies confident they can secure debt from a bank where they do not already have a relationship.

The days of corporates and large private companies feeling obliged to take all their services and advice from one major lender has changed. It is no longer sustainable or logical to work with the same supplier where a company is in an exclusive position to give all the business advice just because they have supplied all the finance.

We believe companies will now seek more independent advice, where banker and principal can be detached. Such freedom of choice opens up new market opportunities for those banks and advisors wishing to grow market share in Scotland as well as new entrants to the sector.The new financial service industry emerging in Scotland with retail banks based on big brand names is an important and interesting development.

There will be other creative sources of capital available where organisations can see an opportunity to raise money. This will result in alternative suppliers moving into this space as a new business opportunity emerges. For example, we have recently seen such a move in the retail sector where shoppers and staff of John Lewis Partnership very recently snapped up a bond, raising 50 million in just two weeks. The 50m has not been earmarked for any particular purpose, but both the department store business and Waitrose, the partnership's supermarket chain, are expanding.

We know many businesses have been dissatisfied with how they have been looked after by their bank in recent times. However, now is the time to move on to a more positive and confident mind-set and help Scottish businesses to get their finances in good shape. It is important to all of us that our private businesses, corporates and entrepreneurs are in a strong position to invest for growth and make the right strategic moves as the economy recovers.

• Rob Cormie is managing director of corporate finance advisory firm Quayle Munro