When we meet a potential new client one of the key areas for the client is our price, this makes sense. They want a great service but they also want value. Accountants are all different, but imagine if you we’re choosing something where all suppliers had the exact same thing. Money. The CSO released the results of their access to finance survey in March and one line in the report caught my eye.
“Only 8.9% of SMEs primarily selected their bank based on the interest related terms offered.”
SME’s could be paying significantly higher interest rates as a result of their failure to take time to research the interest rates offered by other banks.
45% of businesses chose the bank for their finance based on doing other business with the bank, I’m not sure if this is just laziness / time saving or is the (possibly true) assumption that it’s easier to get finance from a bank you already have a relationship with. Either way, good news for banks businesses aren’t pushing for lower interest rates and bad news for business.
The full CSO report is available here