Businesses Won’t Commit to One Business Bank Account

While the media is saturated with headlines exclaiming that businesses in the UK can’t get access to finance, that hasn’t stopped Banks from grappling for their business.

Small business owners who have recently completed the company formation process are inundated with many marketing promotions from

Banks all claiming to offer the best business bank account on the market. However, according to a recent report conducted by Alliance & Leicester Commercial Bank, since the recession began, there has been a twenty per cent increase in the number of companies, who use more than one business banking partner.

The survey found that a quarter of the companies which chose to run more than one business bank account do so because they lost confidence in their original banking partner ,while over half said that it was because they had to ‘shop around’ to get finance.

Craig Cooper, commercial banking manager, comments; “Historically, businesses had one banking partner and one point of contact at that bank. However, as the nature of banking relationships has changed we are seeing many more businesses which have two or more banking partners.”
“ While it is understandable that the relationships between fragmented as a consequence of declining confidence in banks and online banking, it is vital that if a company does choose to have more than one banking partner that they take the time to ensure that that bank understands the aims and objectives of their company.”