February 7, 2006
Free banking attracts start-ups
Many small companies are attracted to free banking when choosing an account provider, according to a survey by the Alliance & Leicester (A&L).
A third of small companies said that free banking was the most important consideration when choosing a bank and the same number said that they expect the service when they sign up.
However, despite nine out of ten saying that their choice of bank was one of the most significant decisions taken when starting out, 42 per cent said that they did not bother to shop around and simply established an account with their personal banking service.
"When starting out, businesses can ill afford unnecessary costs," said Steve Jennings, director of business banking at A&L Commercial Bank.
A&L predicted that many small companies could land themselves with £200 of charges a year, amounting to £136 million for country as a whole.
Mr Jennings added: "The business banking market has become very competitive and this is good news for business owners. I would encourage SMEs as well as established businesses to shop around and ensure that they have the best account for their individual business needs."
Learn more about Business Loans 