Owners of small and medium sized businesses (SMEs) love the smell of money, and prefer cash to debit and credit cards.
Alliance & Leicester Commercial Bank found in its latest Cash Survey that SMEs find cash payments easier to manage than payments by debit or credit cards.
Almost half of SMEs shunned debit and credit cards in favour of cash, as it is "by far the easiest transaction to handle".
The processing cost of cheques and debit and credit cards was another important consideration for 40 per cent of SMEs choosing cash over debit and credit cards.
And with a third of these SMEs noting that their customers prefer paying in cash, it is little wonder that SMEs prefer cash too.
According to the head of cash at Alliance & Leicester Commercial Bank, Russell Carter, many small business banking customers are quick to recognise that handling cash can be a cheaper option than transactions with debit and credit cards.
The bank did however warn business banking customers to check what they are paying in cash handing charges, to ensure that they are not paying too much.
The research estimated that business banking customers in the UK lose £136 million annually because they fail to shop around for the best business banking accounts.
Small business banking customers prefer cash to credit cards
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Small business banking customers prefer cash to credit cards
Fri, 29 Jul 2005
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