Forum welcomes new rules on bank transparency but pushes for more focus on late payment
The Forum welcomes the recommendations from the CMA on small business banking, particularly giving small firms access to Midata, which should save them time in applying for finance and understanding their creditworthiness. They also welcome the focus on helping businesses see clear and transparent comparisons between banks on the costs of their services.
Ian Cass, Managing Director of the Forum of Private Business said, "encouraging businesses to move banks when their service levels fall below acceptable standards and insisting on greater transparency on costs should improve service quality and value for money. Businesses would much prefer to have a bank that really works with them, and avoid the disruption of transferring from one bank to the next."
A greater issue that the Forum highlights however is that of late payment. Their research indicates that 31% of businesses find greater difficulty in running their businesses because of late payment from major suppliers, compared with 18% complaining about their bank.
"Whilst we are please with the recommendations of the CMA, we would encourage the authorities now to look at the issue of late payment," adds Ian Cass. "This is by far the biggest issue for the vast number of small businesses, and a real constraint on their growth."
ENDS
Notes to editors
Representing thousands of small businesses across the UK – including retail, service providers and manufacturing companies – the Forum is recognised by the Government as one of the six main business support and lobby groups. It uses this position to influence decision-makers in the UK and Brussels on the issues that matter to small businesses.
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Media contact for this press release
Thomas Parry
Research Manager
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Email: thomas.parry@fpb.org