Originally written by Timothy Adler on Small Business
The Co-Operative Bank has nearly doubled its free-banking offer for start-ups and SMEs from 18 months to 30 months.
New small business customers will benefit from free everyday banking – subject to certain transaction limits and a minimum credit balance of £1,000 – making it, says the Co-Op, the best introductory offer in the market.
The Co-Op bank aims to double its market share over the next five years, with a particular focus on supporting ethically minded businesses. One in five SMEs (22pc) are set up with a broader social purpose in mind.
In 2018, the Co-operative Bank had over 84,000 SME accounts, including 750 co-operatives, 5,000 charities and 218 credit unions, making it the seventh-biggest provider for business current accounts.
SME customers will then go on to the standard Business Directplus tariff once the 30-month period expires.
Official data indicates that businesses are most likely to struggle in their second year, says the Co-Op. According to the Office for National Statistics (ONS), one in four (26pc) of the approximately 380,000 businesses established each year are likely to struggle or fail within their first two years.
Existing Business DirectPlus customers currently in their introductory period will see it extended