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Banks follow business support scheme with new switching package

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Following their launch of fee-free business lending last month, Clydesdale and Yorkshire Banks have today announced a new switching package for UK businesses. 

Having previously offered 18 months of free day-to-day banking for businesses with turnover up to £1m, the new offer will see this made available to businesses with a turnover up to £2m. 

As a result of the change a further 100,000 businesses across the UK could cut their day-to-day banking costs. On average, a business could expect to save £360 over each year, the banks claim.

For businesses with turnover above £2m in the commercial and corporate sectors, who wish to move their relationship, the bank has launched a separate switching offer. To assist in the transfer of these relationships Clydesdale and Yorkshire Banks will now pay certain costs and fees involved in the process, such as legal fees, which can typically be around £10,000.

Paul Shephard, director of business and private banking for Clydesdale and Yorkshire Banks, said: “We have supported growing businesses throughout the difficulties of the last four years, and we continue to do so; the Growing Business initiative we recently launched is a clear demonstration of that.

“We now offer the best switching package for businesses from any UK bank or building society, meaning that any SME moving to us can save money. Add to that the availability of free-fee lending and there is the opportunity to help your business grow through direct investment and cutting costs.”

However, the banks’ reputation amongst business leaders has not always been the best, some claiming that their treatment of SMEs is unsatisfactory. Claire Stokes, managing director of The Circle Agency, even called it “appalling” in a recent comment on Real Business.

If you have any experience with Clydesdale and Yorkshire Banks yourself, share it in the comments. Will their new scheme help UK business grow?

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