Shhhh... Listen! Do You Hear The Sound Of A Growing Divide?

The growing disconnect between small businesses and their bank has been further emphasized today with the news that more than half of small business owners have ignored advice from their ‘mainstream bank’ in the past year.

The figure comes from new research issued by Amicus Commercial Finance, which also found that four-in-ten of SME owners do not rate the level of service they receive from their mainstream bank as ‘good’. Part of the problem, the research suggests, is the lack of sufficient human interaction from banks, with branch closures and increased automation of services being blamed for the disconnect.

The Amicus research shows that the most common complaints from SME owners when it comes to dealing with their bank include having to go through call centre – with many business owners complaining that the process is time consuming, frustrating and complicated.

With the last five years seeing a 37% fall in the value of overdrafts provided to SMEs by banks, dropping from just over £19bn to £12bn, businesses are looking elsewhere for assistance with cashflow and financing options. 

A growing divide’

John Wilde, Managing Director of Amicus Commercial Finance, said “The research shows a worrying trend of business advice from mainstream banks been rejected or taken on board with negative consequences for SMEs. There is a growing divide between the level of business service and the flexibility required by business owners and the advice being offered by mainstream banks. As working capital and cashflow are by their very nature dynamic, most traditional mainstream systems have failed to keep pace over the last few years.”

Regency Factors PLC 

For more than 20 years we have been structuring innovative financial solutions for our clients, many of whom today trust us with their invoice finance, trade finance, asset finance and purchase finance needs. Our goal is to help your business to grow, to put decades of professional financial expertise to work to ensure that this happens, and to do so in an ethical and responsible fashion, offering each and every client the support and guidance they require.

Regency specialises in developing bespoke financial solutions for clients from across a broad spectrum of sectors. We'll provide you with a rapid response to your needs, a whole-of-industry perspective on solutions, and advice to help you decide.

If you’d like to find out more about alternative business finance facilities, we’d love to be able to help. Why not give Regency a ring today on 0161 280 4010, drop us an email at lynnew@regencyfactors.com or browse our website for more details on how our facilities work.