New research by Alliance & Leicester Commercial Bank suggests that the UK's small businesses could collectively save themselves approximately GBP500 million per year by finding better deals on their current account.
The research found that it is fees for handling cash that are costing businesses with a turnover of less than GBP1 million a year the most. Collectively, the country’s small businesses could claw back nearly GBP300 million on cash transactions alone if they chose to shop around for lower charges.
The study revealed that the average business spends about GBP425 on cash transactions each year when they could be paying around GBP80. In addition, businesses could save more than GBP202 million on non-cash transactions such as direct debits and standing orders when they could be receiving these services for free.
The country’s small businesses are short-changing themselves. Whilst working hard to make money and grow their companies they are neglecting to review how their hard-earned cash is treated, said Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank.