September 09, 2012

Sunday Times: Banks are so last century

Setting up basic banking, such as being able to pay invoices and collect money from your customers, is a full-time job when you're starting your first business in the UK. We hear it's not a lot better in France or Spain.

 

The Sunday Times reported on clever ways for small businesses to take advantage of modern non-bank financial services to cut the cost and relieve this pain. After all, enterpreneurs should be 110% focused on their venture, not dealing with unhelpful bank managers.

 

Ben Pratt, who runs an organic fruit and vegetable supplier in Wales, shared his experience: "Our bank has been unsupportive. It doesn't seem to realise or care that we can use all sorts of other services these days." Last month, his company paid £11,000 of invoices through TransferWise and he estimates they saved more than £330 pounds for the business.

 

"I was nervous about using something new, but it worked smoothly," said Pratt. "The fees were lower and the exchange rate better than the bank's. It's an easy way to save a lot of money."

 

 We are seeing more and more small businesses on TransferWise, keen to escape the fees their banks are taking on their international trade.

 

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