- 01 May
Have You Had A Letter From RBS Asking You To Move Your Business Elsewhere?
Have you had a letter from RBS encouraging you to move your business banking elsewhere?
RBS Letter To Small Business Customers Asking Them To Move Elsewhere
I read James Hurley’s article in the Times, “The bank that likes to say goodbye“ (30th of April 2018) with a sense of shock.
Apparently, the Royal Bank Of Scotland (RBS) are in the process of writing to 220,000 small companies, that are existing banking customers, asking them “would you kindly consider taking your business elsewhere?“.
The article goes on to explain that they are apparently targeting the migration of 120,000 business customers away from RBS to alternative banks. This is apparently related to a condition of the £45 billion taxpayer funded bailout that was received by RBS. The article suggests that U.K.’s biggest banker of small businesses is being forced to provide £350 million for rivals to offer incentives to customers to switch (apparently this is the subject of the letter), in addition to £425 million in the form of a “capability and innovation fund“, to help other banks and finance firms expand their services to small companies.
Invoice Finance From RBS
There are likely to be a number of these small business customers that are also using invoice finance services from RBS, or existing RBS customers that might want to consider switching from a bank overdraft or loan, to an alternative finance option, with an independent provider that will value their business, and treat them as a valued customer.
If you are one of the customers caught up in this situation, we will be happy to help you find alternative funding facilities elsewhere. There are a large number of independent providers that will be delighted to take your business on, and will treat you in the way that you would expect to be treated as a valued customer.
There are a number of funding options that you might want to consider. These include, invoice finance facilities that can often provide more funding than traditional bank based lending. Alternatively, there is a buoyant business loan market that can provide a more traditional form of funding, albeit from a flexible customer orientated financier.
Bank Owned Providers Versus Independent Funders
In the past, our research has found that levels of customer satisfaction amongst users of independent invoice finance facilities were 45% higher than users of bank owned invoice finance facilities.
If you would like to discuss transferring your facility to an independent provider that will appreciate you as a customer, we would be delighted to help you understand the options that are available to you.
Case Studies & Invoice Finance Cost Savings
You should not expect that changing invoice finance providers will necessarily result in an increase in price, in many cases the opposite may be true. We have experience of being able to find cheaper facilities than those provided by banks, in some instances.
This is one case study where we found a 41% saving for one customer and in another case we saved them a smaller percentage but the relationship was much improved.