Small and medium-sized enterprises (SMEs) should make the most of the competitive market surrounding business banking products, it has been suggested.
According to Clayden Associates - an independent financial advisory service - value for money is very important to the sector and should be a deciding factor when seeking a provider.
Daniel Clayden, director of the firm, remarks: "There is the cost side of things in terms of bank charges and the interest that you get - the value for money that you get. Obviously that is vitally important for any small business because every penny counts."
However, he added that directors of such businesses should also take the time to consider the value-added aspects of any provider and balance this against any outlay involved.
All limited companies are obliged to have a designated business banking account, although sole traders are at liberty to use their personal accounts.
According to the Department for Business, Enterprise and Regulatory Reform, of the 4.5 million UK businesses in operation at the close of 2006, more than 99 per cent were small businesses employing less than 50 people.
