Too much jargon facing SMEs03/01/2019
Recent research by Wyelands Bank, set up to help small and medium businesses, reveals financial service providers use too much jargon for relatively simple terms. The research shows companies use nearly thirty different terms for just three financial products.
Receivables finance, where funding is secured against invoices, has the highest number of synonyms used with some 21 different names. Trade finance, which enables the purchase of goods from credit worthy buyers, has five different names. Inventory finance, where credit is secured against stock, is the least confusing product and is given just one other name.
Iain Hunter, CEO of Wyelands Bank, said, “These relatively simple concepts do not need so much jargon around them. Jargon does not differentiate through innovation, but through confusion. It makes it harder for customers to understand what they are looking for or to make the right decisions about what solution to choose.
"We believe the industry should apply the same definitions around each of the core products, doing more to help customers understand. Few customers have the time or expertise to pour over the subtle distinctions between seemingly similar services. Rarely are they experts in the finance industry and nor should they have to be. Making it easy for firms to raise funds to trade, grow and create jobs goes to the heart of the productivity debate in the UK. Anything that gets in the way can be detrimental to those firms and to the UK economy.”