Business owners could be missing out on £3.74bn in annual interest payments, experts at Bank Aldermore have warned.
Some £382.1bn is currently held in business bank accounts with high street banks, which could be earning 0.02% interest.
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Aldermore has said many business owners are not aware of the impact of leaving surplus cash in business current accounts or the benefits of using a tailored business saving account.
Like individual current accounts, interest rates on business current accounts are lower than on savings accounts.
Many banks do not pay any interest at all on business current accounts.
Ewan Edwards, director of savings at Aldermore, said: “An enormous amount of money is lying dormant in business current accounts earning next to nothing in interest. Interest rates may be at rock bottom currently, but the worst thing you can do is earn nothing at all on your hard earned business cash. Clearly holding your business cash in a current account is not going to give you the best returns compared to using other products such as a business savings accounts.”
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By GlobalData“Business owners who are worried about uncertainty impacting their business and want to have cash on hand should be aware that they can still earn higher rates and have instant access to their money,” he added.
In November Aldermore unveiled an online portal for brokers called Asset Backer which aims to improve the efficiency of transactions between small businesses and brokers.
The platform available on the Aldermore website enables brokers to easily manage their portfolio in one place, calculate and deliver quotes, submit new business proposals, generate documentation with e-sign agreement documents.
Asset Backer streamlines the process of submitting new proposals by sending direct to Aldermore’s credit underwriters for review.
Patrick Jelly, commercial director for asset finance at Aldermore said of the paltform: “Asset Backer is a fantastic new tool which will further enhance our customer experience offering. Brokers will now find the process of managing their portfolio much quicker and more efficiently.”
