New research carried out by Bibby Financial Services has revealed that 20 per cent of small businesses feel that their current funding model is not flexible enough and that 42 per cent feel the customer service they receive is not up to scratch. One in three small companies is considering switching provider.
Leading independent invoice finance provider Bibby Financial Services carried out the research of 1,000 small and medium sized businesses. The survey found that business owners expected the same level of service as non-business customers. Demand for facilities such as 24-hour online access, a mainstay of personal banking, is something business owners expect too.
Considering other forms of finance
42 per cent of companies surveyed described their experience with current funding providers as average or poor.
David Postings, chief executive officer at Bibby Financial Services says: “Our research shows that a significant proportion of UK businesses are considering the use of other forms of finance to their existing arrangement and it seems that many are not completely satisfied with their current provider, which is likely to be a driver for change.
“SMEs today expect much more when it comes to flexibility in relation to the amount they can borrow, contract length and online access to finance.”
More competitive deal
Over a third of businesses surveyed said a more competitive deal would encourage them to look for a new arrangement. 15 per cent of SMEs surveyed would also like to try another provider before committing.
When asked about switching providers, SMEs showed caution for a variety of reasons, some of which were setting up costs, customer service, and a general lack of information available about alternative funding providers.
Postings concluded: “Businesses are widening their scope when it comes to considering different forms of finance but it seems that they still don’t have all of the information they need. In order to help them find the most suitable source of funding for their individual business model, the finance sector needs to provide more flexibility so they can make informed decisions.”
Bibby Financial Services
As the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding to over 7,000 businesses, Bibby Financial Services provides a range of finance solutions for companies in over 300 industry sectors.
For more information about Bibby Financial Services’ cashflow solutions, visit: www.bibbyfinancialservices.com or call 0800 91 95 92.