SME customers are key to UK recovery but need state of the art banking support

9 Apr, 2021

The gradual easing of lockdown commences on 12th April and is a much-anticipated restart date for many businesses, whether a sole trader or a larger operation employing many workers.

History shows that for the UK to be able to fight back after a serious economic downturn like the one we’re facing right now; businesses will need a helping hand.

Start-ups and the self-employed who are considering launching new businesses will play a vital role in the recovery, but only if they are given financial support and business banking expertise to help them establish themselves in a challenging environment.

The gradual reopening of businesses of all sizes across the UK is the first but essential step in helping the country get back on its feet following the crippling impact of the coronavirus lockdown.

To achieve a meaningful UK economic recovery in the short to medium term, banks need to turn the tap on to provide essential business banking facilities.

Without this essential lifeline may businesses will struggle and collectively the nation could fail to achieve the rapid return to growth which is vital to achieving a sustained economic recovery.

It will be a challenge for entrepreneurs, many of whom have had to borrow heavily just to keep their heads above water.

Some businesses will need to adopt a bigger web presence as card transactions from Monese customers showed that 80% more was spent online, versus the previous year.

Almost half of the UK’s small and medium-sized businesses sought financial support in 2020, more than three times the level of the previous year, underlining the toll the coronavirus pandemic has taken on the business community.

Getting the basics right

For business owners it’s vital to have professional support including accountancy services, appropriate insurance, and most of all a business bank account that works for them.

This is especially true if you’re starting out in business for the first time.

The golden rule is –  don’t be tempted to try and run your finances through your personal bank account.

It’s vital to keep your business and personal money separate for accounting purposes and to save issues with taxation further down the line.

There are many business bank accounts to choose from, but they are not all the same and it’s important to find one that works best for your business circumstances.

Here’s a handy checklist of questions to ask yourself before you sign up for your account:

  • Do you need a nearby local branch for paying in cash takings?
  • Can you operate online without the need for branch services?
  • What is the monthly/annual fee for the account you are considering?
  • Will you get charged any extra depending on number of transactions per month?
  • Do you get any additional services included in your fee – e.g., accountancy software?
  • Will you be granted a debit card and the ability to draw cash from an ATM if required?

Don’t assume the big high street banks are best for business banking services just because they’ve been around for many years, there are many new challenger brands offering excellent accounts which are cost effective and meet the needs of today’s time pressed business owners.