Small business owners struggling to obtain the best current and corporate credit card accounts are being catered for by Business Finance Compared (BFC), with the release of a new service that helps SME owners receive the best deal when organising their finances.
BFC specialise in helping firms quickly compare and connect with sources of funding across a range of lenders. This new software allows SME owners to choose the best current accounts for their business, by answering a few questions about their firm.
The finance platform has researched the damage caused to business owners who have chosen the wrong current or credit account for their company. By choosing the wrong provider, SME owners risk being charged unnecessary fees, missing out on a flexible overdraft, or losing out on interest.
The problem is compounded by low switching rates. According to the Retail banking market investigation, low switching rates cause a number of problems for SMEs, including:
- Half of businesses are automatically setting up their business current accounts with their personal current accounts provider.
- Only 4 per cent of businesses have switched their accounts in the last year.
- Fewer than 30 per cent of SMEs shop around regularly for BCAs and loan products.
- The government’s Competition and Markets Authority are currently running an investigation into SME current account switching.
- National banks also are attempting to improve this issue by investing heavily in switching services.
Olly Betts, CEO and Co-Founder of BusinessFinanceCompared.com, highlights the importance of SMEs getting a good deal on their bank accounts.
‘‘No one wants a bad deal on their bank account. But not many businesses know how to compare the offers out there.’’
‘‘In the consumer market, where products and rates are easily comparable, over a million people switched current accounts in 2014. This is an increase of 12% on the year before, and shows what can happen when consumers are empowered to get the best deal. Now, I want to see businesses do the same.’’
A number of small business owners have already used the service, including Simon Brundish, managing director of sports training firm Strength Lab. Brundish has nothing but praise for the current account feature.
‘‘When I started my business I am not afraid to say that finding the best current account seemed complicated; many business owners like me did not know where we could compare the best options available.’’
‘‘This new service from BusinessFinanceCompared.com is a quick and simple way of seeing whether I could be getting a better deal, which makes a real difference to businesses like mine,’’ continued Brundish.