intelligent

The data provides insights on banking behaviours and the greatest concerns of London ’ s businesses . Regarding behaviours , 32 % of London SME leaders worried about the future reported losing sleep when worrying about their business , higher than other major UK cities , Birmingham ( 26 %) and Liverpool ( 22 %).

While the owners of London SMEs are facing similar challenges to their counterparts in other cities in the UK , they have the second highest appetite for switching their accounts . Almost three-quarters ( 73 %) would consider switching their business account if an alternative offering better met their requirements . In addition , over a third ( 36 %) of London SMEs confirmed that they review their bank accounts on an annual basis , a higher proportion than Southampton ( 33 %), Manchester ( 32 %), Glasgow ( 31 %) and Nottingham ( 29 %).

The challenges facing SMEs in the UK amid the current economic climate have been well publicised . The spike in inflation over the past 18 months and the resultant surge in interest rates , hit consumer confidence and levels of disposable income . The knock-on effect for SMEs in London is clear , with 20 % reporting that late payment from customers is one of their key challenges . As a result , SMEs have faced significant financial pressures , which have been reflected in the rising number of business insolvencies .

The most common concern among London SMEs was the rising cost of living , which 39 % cited as a key challenge for the year . This was closely followed by rising costs , at 36 %.

London SMEs are keen to ensure they find the banking provider that suits them best . In doing so , this supports the finding that London SMEs have a strong level of financial education with a large majority ( 80 %) being aware of all the differences between a business and personal current account .

A quarter of SMEs in London ( 26 %) are attracted to a bank or building society because of the services they offer , such as a business manager , financial advice or cash banking capabilities . A higher proportion than SMEs in Sheffield ( 24 %) and Norwich ( 18 %). This desire for financial advice is clear among London SMEs , as 29 % of those who use a business account do so because their bank provides financial advice , a higher proportion than Nottingham ( 25 %), Liverpool ( 15 %) and Leeds ( 15 %).

John Dentry , Product Owner at Pay . UK , commented : “ Much like across the rest of the country , small businesses across London have had to adapt to an unpredictable economic landscape . This has led many to become concerned about the profitability and the survival of their business . Strong financial advice can really help London ’ s businesses here , something which is clearly reflected in our findings .” �