The switching may enable many of the banks to invest in their businesses in a variety of ways. Businesses with a turnover of up to GBP1 million have the potential to save thousands of pounds annually by shopping around for the best value account for their individual business needs.
These savings could make a considerable difference to small and medium enterprises (SMEs). Over a third of SMEs surveyed said that they would plan for the future by putting the money into a business savings account, whilst one in four would use the extra cash to pay off debts. Many would use the sum to invest in business development, with more than one in ten that is 12% choosing new IT systems, 9% opting to spend the saving on additional advertising or marketing, 4% investing in premises and a further 4% ploughing the cash into research and development.
Almost a quarter of those that haven’t switched mistakenly believe all banks are the same, so ‘there’s no point in changing’ and almost one in five feel that they simply don’t have the time. The research found that one in fourteen businesses have switched business banking providers in the last year alone.
Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank, said: UK SMEs are missing out on over GBP500 million every year, simply by not shopping around for the best deal – our latest research shows that savings made on bank charges and credit interest could make a real difference to a business. It’s vital that businesses review their banking regularly to ensure they are getting the value they deserve.
