White Collar Consultants Limited

So much more than tax

01952 780 220

accounts@wcc-ltd.co.uk

How are bank closures effecting small business?

09/07/2018

For the past few years up and down the country banks have been closing branches.

In our local high street there have been three closures that have caused our clients major upset.

Here are some examples of the problems faced by these closures;

  • One of our clients lives and works in a rural location, most of their clients are of a generation that do not trust internet or phone banking and insist on paying their bills with cheques.
  • This costs our client almost £10 in processing fees for every chq received because they now only have two options available to them.
  1. Drive 15 miles to the town centre branch, pay for parking and be away from the office for a min of an hour depending on how busy the only branch of this bank is. That means an hour of lost productivity, missed phone calls etc.
  2. Deposit the cheques at the local post office in an envelope provided by the bank. These cheques usually take up to seven days to show on the bank statement and then a further three days to clear the bank account, that is seven days before the funds can be used.

We recently had a client that was due a refund from a governing association board for an overcharge of their annual license fees paid. It took the association more than ten months to eventually issue the refund and they did so by issuing a cheque. Our client then popped down to the local post office and deposited the cheque at the counter in the enveloped supplied by their bank, now a month and a half later the cheque is yet to be receipted to our client’s bank account.

As small business can least afford these types of delays and costs:

What is the answer?

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