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Santander Campaigns for SME Finance

Santander is making its 123 current account available for business customers as it moves to increase its slice of the small business banking market

Finance has always been a bit of a sore spot for small businesses. A growing mistrust in institutional banking has led to the emergence of alternative finance platforms such as crowdfunding and peer-to-peer lending. While these options tend to boast concepts that are innovative and flexible, not all firms have the financial capacity, or indeed the willingness, to embrace them.

With the Brexit deadline steadily approaching, businesses need financial stability over everything else. In other words, business owners need the assurance that any increase in business fees or consumer goods will not make them the next insolvency statistic. This move by Santander could ease some of the financial anxiety for many of these smaller firms.

This new fund will be provided by the Royal Bank of Scotland, who has been forced to pay £775 million to improve business banking after accepting a £45.5 billion bailout during the financial crisis.

Santander will offer small businesses an account costing £12.50 a month and will return cash, based on their turnover, of between 1 per cent and 3 per cent, with a maximum of £300 a year. With many bank loans no longer readily available for small business customers, this proposal from Santander could provide some respite.

While there is little doubt that this grant will be well received by business owners, the Spanish bank faces competition from holding company CYBG who also seeks to invest it in one of their current accounts. It is important that small businesses know their financial stability doesn’t start and end with the banks.

RBS has to provide the fund as an alternative to the European Commission’s original order that it sell some branches and divest 200,000 small business customers to reduce its dominance in this market. It spent billions of pounds trying to split off the business, but gave up last year.

At the Credit Protection Association, our debt recovery services free up cash flow for our Members and encourage their pursuit of expansion and business growth. This is achieved through our collection team who chase down debtors and satisfy any unpaid invoices.

It is our credit monitoring services however that assure complete stability and security. The combined efforts of our credit reports, credit checks, directorship and company register and County Court data, all create a thorough and comprehensive overview of all customers and suppliers. If every business is to arrive at the Brexit deadline, encouraging investment and financial confidence is essential.

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
Alternatively, either email us or use our contact form.

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