UK-based consumer group Fairer Finance has introduced a new product rating system specifically aimed at small businesses. The initiative seeks to provide clarity to entrepreneurs who often face overwhelming choices when selecting a bank account.
Helping Small Businesses Choose with Ease
Fairer Finance, known for its consumer-oriented product ratings, now offers evaluations of over 30 categories, including banking, insurance, and credit products. The new ratings will provide business owners with a streamlined approach to selecting business bank accounts, offering insights into what is essential for their operations.
James Daley, Managing Director at Fairer Finance, shared his vision: “Our new ratings aim to save time for entrepreneurs by giving them a quick snapshot of which accounts offer the best value. While some research is still necessary, these ratings simplify the decision-making process.”
How the Rating Works
The ratings are based on key features, costs, and benefits of various business accounts, taking into account both upfront fees and long-term charges. Only the best-performing products receive a five-star rating, with fewer than 15% of accounts reaching the top tier. The rankings also differentiate between high-frequency cash accounts, low-frequency cash accounts, and cashless payment accounts, ensuring that every type of business is covered.
Supporting Small Businesses and Boosting Economic Growth
Daley added, “We aim to encourage healthy competition among banks, driving innovation to support small businesses and contribute to economic growth.” This move comes at a crucial time, as the UK Parliament’s Treasury Committee reported a troubling trend: over 140,000 small business accounts were closed by major banks in the past year.
More Support for Small Business Finance
In related news, the Centre for Finance, Innovation and Technology (CFIT) recently launched a coalition, funded by Mastercard and Lloyds Bank, to support small businesses in raising external finance.
The new rankings are just one example of how the UK is stepping up to support its 5.6 million small businesses. As more financial services evolve, these initiatives promise to offer entrepreneurs the tools they need to succeed in an increasingly complex marketplace.
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