According to new research, Britain’s small and medium businesses are becoming more and more frustrated by their banks. Many are becoming more disillusioned as banks fail to help their businesses, and are angry over how they are treated.
This survey conducted by Platform Black shows a picture of overwhelming frustration when it comes to SME relations with the British banks. 62% of business owners said that their relationship with their banks had worsened over time – many were also angry with how their bank treats them on a daily basis. Nearly half (43%) said that they were frustrated in their bank’s ability to help them and their business.
The biggest bugbear was, perhaps unsurprisingly, the banks’ inability to offer finance. 38% said they had been rejected for a loan or overdraft when they applied, while the same percentage had seen their existing overdraft facility either reduced substantially or withdrawn completely. What’s more, it’s not only those businesses who are unsuccessful in applying who are unhappy. Many of those who already had a loan or overdraft are now paying more for the privilege - 57% of respondents said they have been hit by higher interest rates, often with tougher terms and conditions.
Despite all these frustrations, it emerged that 59% had not changed their bank for more than 10 years, either through a sense of loyalty or else inertia. Despite many being unhappy and frustrated with their banks, particularly in their ability to offer constructive funding options, they have remained with their same providers.
With so many businesses unhappy with their bank’s ability to provide funding, it’s becoming more common to look to alternative finance providers for flexible and accessible options. Invoice finance is one such option – this is a flexible way to boost your cash flow either on a one off or long term basis. If your bank isn’t measuring up, then it’s time to do something about it!