Clydesdale and Yorkshire Banks has underlined its support for UK SMEs by launching 25 months fee-free day-to-day banking for start-ups and small businesses switching to the banks.
The market-leading offer is open to all start-up businesses within their first 12 months of trading, and for businesses with an annual turnover of less than £2m which switch their business accounts to Clydesdale and Yorkshire Banks*.
Research conducted by Clydesdale and Yorkshire Banks shows that around one in six small business owners are dissatisfied with their main business current account and one in seven is likely to switch.**
To make switching bank accounts easier for business owners, Clydesdale and Yorkshire Banks are part of the government’s Current Account Switching Service which allows businesses to move their current business accounts in seven working days.
Paul Shephard, Director for Business and Private Banking at Clydesdale and Yorkshire Banks, said the introduction of this market-leading service, comes at the right time for the UK’s small business population.
He said: “Successful small businesses are absolutely crucial to the health and vibrancy of our economy. They create jobs, provide vital services and drive innovation.
“We also recognise that the early stages of a new venture can also be the toughest, as owners balance the day-to-day running of the business with looking to the future. We’re continually looking to provide a genuine challenge in the small business market, and by introducing this new offer we can reduce the cost of banking allowing owners to concentrate on growing their businesses.”
Clydesdale and Yorkshire Banks’ fee-free banking comes as the nation’s small business sector continues to grow. According to the latest official figures, last year there were more than 5.2m SMEs in the UK with a combined turnover of £1.2 trillion. This is the first time the SME population has exceeded 5m.
Earlier this year Clydesdale and Yorkshire Banks became the first to partner with the British Business Bank under its ENABLE Guarantees scheme. Up to £125m of new lending by Clydesdale and Yorkshire Banks, guaranteed by the British Business Bank, will help more small businesses achieve their growth ambitions.
*Offer applies to new Small Business Banking customers with a turnover of less than £2 million switching their main business current account or Start Ups opening first account within 12 months of beginning trading. No charges applies to cash or cheque deposits and withdrawals, Direct Debits or other automated transactions. Borrowing facilities up to £250,000 available subject to status, fees apply. Cash limit (paid in, paid out or exchanged) of £250,000 per annum. At the end of the free banking period, businesses will move to the Business Banking Tariff
**Research conducted by Gusto via online questionnaire of 200 financial decision makers in UK SMEs (up to £2m turnover) in January 2015