Small firms seek payment card advice close to home

Britain's small firms prefer to turn to their peers for advice when it comes to choosing the right payment card for their business, according to new research from MasterCard Global Commercial Products.

Nearly half of company decision makers (49 per cent) say they would value information gathered from fellow businesspeople in the local area.

This compares with 44 per cent who would prefer to consult their bank manager and 39 per cent who would turn to an Independent Financial Adviser (IFA) for guidance. A third (33 per cent) choose to keep it in the family by placing their faith in the views of family and friends.

Despite the continued growth of the Internet and the emergence of so-called 'new media', websites (24 per cent) and blogs (8 per cent) lag well behind in terms of the information sources preferred by respondents to the survey.

Meanwhile, decision makers cite protection against fraud (62 per cent) as the biggest benefit offered by a business payment card. This ranks ahead of factors including a flexible credit limit (38 per cent) and the ability to vary credit limits from employee to employee (27 per cent).

Commenting on the findings, Jorn Lambert, Group Head, Commercial and Consumer Product, MasterCard Europe, said "Consistent with many other key decisions, we see small business owners valuing the advice of their peers when deciding which business payment card best suits their individual needs.

"Networking is an important skill for anyone looking to build a successful business. Having a circle of contacts to turn to for information and support provides vital insights that small business owners can then leverage to help make their card payment decision."

"It's also encouraging to see company owners recognizing the role business payment cards can play in the fight against fraud. Besides reducing the security risks inherent to employees carrying cash on their person, payment cards also provide a means of monitoring and analyzing employee business expenditure and identifying abnormal spending patterns."