According to Allica Bank, SMEs are “losing out on £7.5bn each year because banks are failing to pass on higher interest rates to companies with savings”.
“Banks are systematically offering larger companies better savings rates while small firms have £150bn of deposits sitting in accounts offering no interest at all.”
Craig Beaumont, of the Federation of Small Businesses, said that with companies “are under significant pressure” because of the difficult economic environment, “the least your bank should do at a time of high inflation is provide a fair rate of interest. Small business owners should look at their current arrangements and shop around”.
And with memories of the weekend’s Storm Babet not yet faded, there are more concerns for SMEs, with Supply chain disruption the top concern for medium-sized businesses ahead of winter, according to a survey by consultancy BDO.
It says rising costs are also a major worry amid fears that customers will trim their spending over Christmas because of this.
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