£2.3bn fees for business banking facilities

Small businesses and SMEs are spending more than £2.3bn a year purely on transaction charges and fees for business banking facilities.

Companies are also missing out on the chance to earn interest on business accounts yet will still incur fees, a new report has indicated.

The YouGov survey found that almost one in four small businesses pay an average of £1,792 on business banking charges each year, as it has become apparent that ‘free banking’ is getting harder and harder to find.

52% of firms indicated they would consider changing accounts if they were able to receive a lower cost service.

The news came as consumer groups have become increasingly vocal about high banking charges, with both businesses and consumers anecdotally reporting that they pay close to £900 a year purely for going overdrawn without permission.

Banking alternative?

If your business is seeing astronomical fees for dipping into the overdraft facility, why not consider flexible business finance facilities?

Invoice finance, which includes factoring and invoice discounting services, works to unlock the cash you have tied up in unpaid invoices.

It also grows in line with your business, so the more invoices you issue, the more cash that becomes available to your business.

Why not browse our website today to find out more about how invoice finance works to improve cashflow for owner-managed businesses.