The ongoing coronavirus pandemic continues to be a source of great financial anxiety for small and medium-sized business owners. Many have had to eat deep into their cash reserves or seek emergency sources of funding, turning their business plan entirely on its head.
For some of the more fortunate that I have spoken to – although it may not feel that way – the challenge has been deciding how to best manage their cash reserves during the pandemic.
On the one hand, it’s never been more important for your business to keep money aside and available to plug any unforeseen gaps that might emerge. But on the other, you don’t want your company’s hard-earned cash sitting in an instant access account earning next to nothing in interest. All the more frustrating when revenue streams might be tightening up elsewhere.
It’s with this dilemma in mind that, a few weeks ago, Allica Bank launched a business savings notice account. Notice accounts are a bit like a middle ground between instant access and fixed-term business savings accounts. They pay a competitive interest rate, but you can also withdraw your money at any time, providing you give us 95 days’ notice.
It could be a tonic for those small businesses that want to get a decent return on their cash deposits, but who don’t have the flexibility to lock it all away for a fixed term.
Expert Banking for Business Britain – with business current accounts on the way
Our new notice accounts are just one part of Allica Bank’s ongoing mission to build a full suite of financial products designed specifically to serve the needs of small and medium-sized businesses. Earlier this year, we launched 12-month and 24-month fixed-term business savings accounts for those businesses in a position to tie their money up for longer, in return for a potentially better rate.
We also intend to launch a business current account, allowing business owners to benefit from Allica Bank's expert service and modern tools in their day-to-day banking activities, too.
The recovery from COVID-19 isn’t going to be easy. Quite what it’s going to look like still remains to be seen. But one thing’s for sure: at Allica Bank, we will do all we can to empower small and medium-sized businesses to succeed.