More than nine in ten small and medium-sized companies believe that good supplier relationships are critical in the current economic uncertainty, according to a survey by HSBC Commercial Banking.

The survey of 500 SMEs revealed that 91% of respondents think that having a good relationship with a supplier who knows their business and is therefore more willing to be flexible is essential.

The ‘Value of Relationships' report also found that 31% of respondents said that their suppliers could save them money and 11% think they would be able to offer them useful advice when times are tough.

Small businesses reported that trust is the number one factor in making a supplier relationship work, with 56% of respondents listing this as the most important factor. Reliability and consistency of service was listed as the second most important factor and only 9% of businesses surveyed isolated value and cost as the defining factor of a good relationship.

"SMEs recognise that good relationships with suppliers are vital to help them navigate through testing economic waters," said Noel Quinn, head of commercial banking in the UK at HSBC.

"For suppliers committed to helping businesses succeed, it is clear that having a close relationship comes from developing a good understanding of the company and building trust."