According to Alliance and Leicester Commercial Bank (A&L), small businesses across the UK are missing out on over £500 million every year through misguided banking loyalty.
Research from the commercial banking arm of one of Britain's largest financial institutions suggests that cash transactions are costing small business almost £300 million alone because the organisations are not shopping around for the best deals available.
Non-cash transactions such as direct debits and standing orders cost over £202 million to small businesses whose turnover is less than £1 million a year. These services are free from some banking institutions.
"The country's small businesses are short-changing themselves," said Steve Jennings, director of business banking at A&L.
"Whilst working hard to make money and grow their companies they are neglecting to review how their hard-earned cash is treated."
Mr Jennings noted that around four of every five small businesses were signed up to one of the "traditional banks", which meant they could be shirking the best deals.
"We would encourage every business to shop around to check if they can get the same service for a better price elsewhere," he added.To view information on getting a business loan, click here
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