Cash is still the 'lifeblood' of small buinesses, according to a new survey by Alliance & Leicester.
SMEs (Small and Medium Enterprises) handle £28 billion in coins and notes every month, with London and the south-east accounting for almost two-thirds of cash handled.
Head of cash marketing at Alliance & Leicester Commercial Bank, Russell Carter, said: "Our survey results explode the myth that cash transactions are about loose change. It is crucial to realise the importance of the humble coin and note when such a high proportion of cash transactions in the UK involves sums of more than £80.
"Businesses need to ensure they have the right facilities set up for cash handling, so they are paying minimum fees and earning maximum interest on the cash they bank."
It was found that the industries like entertainment took the highest average value cash transactions, with almost two-thirds of transactions involving more than £80.
However, a recent study by the Post Office revealed that while half the population like to pay for transactions under £10 in cash, the younger generation to tend to reach for their credit cards.
At the end of December 2004 credit card spending overtook cash for the first time ever.
Nonetheless, the credit card culture has not been embraced by all Britons, with one in four people refusing to use their credit cards for transactions less than £20.To read more about Banking, click here.
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