Nearly a quarter of manufacturing SMEs, loyal to their finance providers, realise they could make more money if they changed finance provider more frequently, but only one in three do so.

Nearly a quarter of manufacturing SMEs (22 per cent) realise they could make more money if they changed finance provider more frequently, however one in three (37 per cent) have never done so, according to research from Standard Life Bank Business Savings. The survey of SME directors found that 88 per cent of those in manufacturing believed that their company actively managed its cashflow. Yet only a third (35 per cent) have a business savings account and, of these, 32 per cent said they rarely used it.

Alan Dring, Head of Sales for Standard Life Bank Business Savings, said: 'The UK's manufacturing SMEs are remarkably loyal, with 96 per cent saying they are loyal to their finance provider.

However their loyalty is costing them money because the average business current account offers an interest rate of 1.9 per cent against a business savings account paying up to 3.60 per cent.

It is concerning to see that such a large proportion of SMEs think they are managing their cashflow well when half have never even changed their finance provider.

To make the most of their cashflow, businesses should review all their suppliers at least once a year, including their finance provider, to see if they can get a better offering elsewhere.

This is not about changing provider for the sake of changing, but about using the right financial products to suit a company's needs.' The survey found that while SMEs know they could make money if they changed finance provider, interest rates were just one of their considerations.

Understanding of their business came top of the list with 95 per cent saying it was critical.

Good customer service came in second (92 per cent said it was key) while a good interest rate actually came third in the list although the majority (91 per cent) thought it was essential.