For any small business owners looking to grow their brand, a good relationship with their payment services provider is essential – especially when they’re looking to enter the next stage of growth.
However, it turns out many small business owners and SMEs want more from their bank, according to research conducted by Visa.
Visa Europe says that, after speaking to 750 small business owners in the UK, only 30% are ‘completely satisfied’ with the payment options available to them from their bank. As company turnover rises, that figure begins to fall further, suggesting that growing companies are desperate to offer more payment options to their consumers.
Visa’s research also highlights how alternative payment service providers are now emerging within the market, though they have yet to attract the sizeable SME market enjoyed by banking institutions.
Despite this, a consultative payment services provider could effectively help smaller businesses lay the foundations to provide better payment solutions for their customers as they grow. By implementing more refined internal processes, business owners can concentrate on building their brand and expanding into new territories.
Having a strong relationship with the right payment services provider can open up a world of new financial opportunities for any business. Looking to grow your company and enter new markets? Read our blog ‘Can a consultative payment services provider boost SME growth?’ to find out more.
Why SMEs should consider shopping around for a payment services provider
It’s easy to see the big name brands as a ‘safe option.’ However, the right payment services provider can really empathise with small business owners and understand the problems they face, especially when it comes to dealing with issues such as due diligence, compliance and industry regulation.
These issues are something that a lot of banks aren’t helping small businesses with as best they could. This is especially pertinent now the UK is on the verge of leaving the EU. Smaller companies are hoarding cash and cutting investment, according to bankers, as confidence wobbles before Article 50 is triggered.
Further research indicates that just under half of SMEs who export will see changes to their business post-Brexit, while just over half of importers expect the same, according to TransferWise.
When it comes to making international payments, TransferWise also highlights how banks can hide extra charges within their exchange rates for international transactions. No wonder small businesses are worrying about sending money abroad.
This is one issue of many, perhaps. But at times of uncertainty, a bespoke payment services provider could be a better option for small growing businesses than a traditional banking institution.
The growth advantages of a consultative payment services provider
Whilst many small businesses are eager to secure any kind of funding for their company, more and more entrepreneurs are also looking to align themselves with financial institutions that have the same ethical attitudes that they do.
The ‘big five’ UK retail banks are experiencing a decline in revenue, while new entrants to the market and smaller payment service providers continue to grow. One key reason is that smaller businesses would like banks to behave as they do, by investing in ethical industries and upholding certain morals, for instance. This is particularly apt as many small UK businesses are still feeling the effects of the 2008 recession.
A consultative payment services provider can not only help small businesses to grow into new markets and offer more flexible financial options for their consumers. They can also work with SME owners to solve specific challenges they face, such as issues regarding compliance, standards of service and business efficiency.
Fibonatix consults with small business owners to provide flexible payment solutions that help them grow their business, and share our expertise in the financial sector. Get in touch to find out more.
Having a strong relationship with the right payment services provider can open up a world of new financial opportunities for any business. Looking to grow your company and enter new markets? Read our blog ‘Can a consultative payment services provider boost SME growth?’ to find out more.