Around 100,000 small business owners have already taken advantage of the simplicity and reliability of switching business accounts to another bank or building society, since the launch of the Current Account Switch Service.
For too long, SMEs felt unable to get the best deal available due to the complexities involved in switching to a new business banking provider. Moving payments manually, informing suppliers and customers of a change in account details made the idea impractical for many.
Over 99 per cent of switches have been successfully completed within seven days, and the service has achieved a satisfaction rate of 93 per cent. And those figures include SMEs.
Business account switching - how it works
Firstly, decide which bank or building society you would like to move your business account to. Then go through the normal account opening process, stating you want to use the Current Account Switch Service.
The good news is that, following changes implemented by 18 banks and building societies across the industry in January, opening a business account has now been simplified.
Once your new account is open, all your old account activities, including all your payments in and out will be seamlessly switched to your new account within seven working days.
Importantly, any payments sent to your old account by mistake will be redirected to your new one, indefinitely if required. If any payment is made using the old account details, the payer will receive a message confirming your new details.
You will need to have fewer than 50 employees and have an annual turnover of less than £6.5 million. If your business meets these criteria, the rest is plain sailing.
So confident is the Current Account Switch Service that the transition from the old to the new account will be seamless that it comes with a guarantee. This means that, in the unlikely event of any issues, your new bank or building society will put it right.
Who runs the Current Account Switch Service?
It may surprise you to learn that the switching service is owned and managed by one of the most trusted brands in the UK's financial services sector - Bacs Payment Schemes Limited (Bacs), the organisation behind Direct Debit and Bacs Direct Credit.
Although nearly 50 banks and building societies have signed-up to offer the service to their customers, it is managed impartially by Bacs to ensure that the needs of consumers and SMEs are put at the centre of decisions relating to its day-to-day operation.
Bacs' Director of Product and Strategy, Anne Pieckielon, said: "We have worked tirelessly since the Current Account Switch Service first launched, to put SMEs and consumers at the heart of the service. Only by doing this can we truly offer a service which delivers the best outcomes for all.
"We have also worked collaboratively across the industry, using our unique position and experience as a catalyst for change and the Current Account Switch Service is a shining example of this."
As a small business owner there are many things which might keep you up at night, but moving your business account needn't be one of them.
