Alliance & Leicester reveals businesses opting for cash for large purchases

21 June 2005
According to new research from Alliance & Leicester Commercial Bank, the idea of petty cash may be outdated - more than a quarter of cash transactions by businesses actually exceed £80.

Twenty-six per cent of all cash transactions by UK businesses are for more than £80, Alliance & Leicester Commercial Bank found - and fewer than one in ten organisations make average cash transactions of less than £5.

"The premise that retailers, hoteliers and other cash handling businesses are all about 'loose change' is a myth," said Russell Carter, head of cash at Alliance & Leicester Commercial Bank.

"With over a quarter of businesses seeing typical cash transactions of more than £80, cash still has a major role to play.

"It is crucial that these businesses have the right cash handling facilities in place, to ensure that they are paying minimum fees and earning maximum interest on the cash they bank."

London-based businesses are most likely to flash the cash according to the research, with a third likely to spend more than £80 in the average cash transaction.

By contrast, businesses in the Midlands and Wales are least tempted by cash transactions, with only one in five spending more than £80 on the average cash transaction.

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