Ask many owners of small and medium-sized enterprises what their biggest grievance is with the banks and the answer could surprise you.
The row over lending to SMEs might dominate the headlines but most companies aren’t in the market for credit just now. For them, other banking issues are more important: charges and service levels.
So David Prosser has some good news for London businesses as he writes on Business Connections — the Evening Standard’s website dedicated to start-ups — that a price war is raging in the business banking market, both for fledging firms and for companies prepared to switch account providers. All of the main High-Street banks are at present offering free banking for an extended period to new customers as they seek to entice SMEs to move to them.
But, he warns, SMEs are not always as dynamic as they should be in seeking the best deals from their banks. Although switching accounts is much easier than it once was, the number of SMEs which change bank is still considerably lower than in the personal account sector.
Also this week: there is still time for London’s SMEs to cash in on the Olympics and the website carries details on how to do just that. And if you’re trying to save money on telecoms and broadband, our practical guide tells you how to do just that.
www.es-bc.co.uk
