Seven in ten small business owners say their bank ignores them and even "actively discriminates against them in favour of larger companies" according to a new survey.
Most small business owners believe that their banks favour bigger businesses and don't do enough to support them. These are the findings of a new poll of 500 UK small business owners conducted by Censuswide on behalf of fintech platform HedgeFlows.
The findings show that 70% of small business owners say their bank "actively discriminates against them in favour of larger companies". A substantial majority also feel ignored by their bank, with 73% saying they struggle to secure a meeting with their bank or financial manager, leading to delays in business planning.
Lack of support from banks
In particular, those businesses looking to expand overseas are not getting the support they need from their banks, with 72% of small business owners saying that their bank provides very limited support around international payments and further support is needed to give them the confidence to expand.
Worryingly, 69% say their company would benefit from international expansion, but 65% say they currently lack the financial expertise to open an office overseas. Additionally, 78% admit that their company has limited cash reserves in the face of rising inflation and an uncertain economy.
High trading costs
SME bosses also say that plans for international and overseas trade are being scuppered by high trading costs; 72% say bank transfer fees abroad are too high and should be reduced for smaller companies.
"It's absurd that so many of our most ambitious and fast-growing businesses feel left out in the cold by their bank and unable to access the level of service enjoyed by their super-size counterparts. The time has come to equip SMEs with a level playing field to expand internationally, giving them access to a suite of services required to manage overseas transactions, currency conversions and cashflows. These privileges are already enjoyed by larger enterprises and should be available to businesses of all sizes." Neh Thaker, co-founder of HedgeFlows.
How to find the best bank account for your business
More and more small business owners are looking for a new business bank account. The past few years have seen an influx of new online banks, offering incentives to switch and promising higher levels of service.
The good news for small business owners is that once they have found the best business bank account for their needs, it is quick and easy to switch thanks to the Current Account Switch Service. This service can be used by small businesses and charities with less than 50 employees and an annual turnover of less than £6.5 million.
Written by Rachel Miller.