Business owners have been warned to check the finer details of banking agreements after it emerged a number of businesses were being pushed to take out highly complex interest derivatives.
Following investigations into the recent payment protection insurance row, the Sunday Telegraph reported that many claimants had no idea of costs linked to products used to mitigate the risk of high interest rates pre-2008.
Business owners who believe they may have been mis-sold products were advised to write to their bank asking for redress. If no response was received inside a month, a formal complaint should be made, as banks have to go through a set procedure and timetable to resolve (or not) complaints.
Invoice finance solutions
With bank overdrafts and loans becoming harder to access and more expensive to many, businesses are increasingly seeking other alternative funding solutions, such as invoice finance solutions, to unlock their cashflow.