Loyal firms miss out

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Businesses in Yorkshire and Humber are more likely to change their bank than those in any other part of the UK, according to a new study by Close Invoice Finance.

More than a third have changed their bank in the last five years and, although one in five firms from the region have never changed their bank, that proportion is lower than any other region.

Ian Steward, local head of Close Invoice Finance, says businesses need to be more willing to switch banks.

“Until businesses start voting with their feet, banks have little incentive to raise their game and firms may be missing out on the best deals and service, or worse, face insolvency,” said Mr Steward.

“Businesses clearly feel that it’s safer to stay put with their existing provider than jump ship in pursuit of something better. But if they look around and do their research they will find plenty of other willing and able, and often more flexible, financiers in the market place.”

More than a third of UK businesses have never changed bank and almost four out of five have not changed bank in the last five years.

During the last 12 months – one of the most difficult economic periods in history – a mere six per cent chose to change provider.