Small business customers on the move
Twelve per cent of micro business customers said they would definitely change banks during the next six months, while 20 per cent said it was highly probable they would do, research by East & Partners found. “[Micro businesses] are not aggressive buyers of banking products; display suspicious and often openly jaundiced views of their banking relationships and the banking industry at large,” said Easts’ in a report. However, they have a huge appetite for debt – with almost three-quarters identifying term loans as a product of increasing importance to them. Easts estimate that micro businesses account for between 25 per cent and 27 per cent of all business lending.