McGowan Rutherford is an established home interiors wholesaler with a customer base of 3000 retail outlets spanning the length and breadth of the UK. Based in Burwell, Cambridgeshire, the business sources high quality contemporary and classic pieces from around the globe.
With 10 employees and a £4 million turnover, McGowan Rutherford supplies a full range of decorative products from coasters to furniture, taking in classic European styling as well as vintage and retro designs. The 57000sq ft warehouse has new stock arriving daily, with all pieces showcased on site in a dedicated showroom.
While expansion has prompted several moves, the company has remained committed to the Eastern region since inception – it had its first premises in Great Dunmow, in Essex, when it was founded more than 30 years ago. Find out more here: www.mcgowanrutherford.co.uk
The challenge
Small businesses have seen big challenges over the last few years: Brexit, Covid, shipping price hikes due to ongoing conflicts, even Houthi high seas piracy – all have had a big impact on the cost of doing business.
Those issues were exacerbated by the low savings rates available to smaller businesses, which left many reluctant or unable to invest.
Ian Rutherford is the founder and director of McGowan Rutherford. He explained: “When rates were really low, there was little point in moving cash into any savings account – if you’re getting 0.2% return, then it just isn’t worth it.”
With savings rates back to a healthier level following years of low returns, Ian was keen to find a home for his cash surplus – however, like many small business owners up and down the country, Ian’s views of the bigger banks had become tainted as they moved further away from the business model in place when his business launched three decades ago.
Like many other smaller businesses, Ian was feeling the loss of the personal service he once valued as the big banks continue to withdraw from the high street, prioritise automation, and replace face-to-face contact with a one-size fits all service level.
Ian said: “There are advances in technology which are becoming more commonplace – and that doesn’t always work out well for the customer. While these things were supposed to provide more choice, they actually provide less, not least when it comes to personal interaction.”
Another example of the way small business needs are not being accommodated by the bigger banks is the changing attitude to cash. “It feels like banks are discouraging the use of cash yet, for a business like ours, the charges for card payments are huge – 2% is a significant amount” commented Ian.
Ian’s experience is borne out by research recently carried out by Saffron Building Society, looking at the relationship between larger financial institutions and their smaller business customers.
The solution
McGowan Rutherford has had a lengthy financial relationship with one of the biggest high street banks but when it came to managing company reserves, Ian felt the loss of personal contact and understanding of his small business needs meant his best options for savings accounts lay elsewhere.
He said: “I’d always had a good relationship with my bank – I used to be able to chat to my bank manager at any time. Now, I don’t even have a bank manager. I think there’s a business hub somewhere but I have no idea where. There’s certainly no personal service provided anymore.”
Like so many other small businesses, Ian wanted a savings partner he felt comfortable with, and one that could provide the personal contact and support lacking in his day-to-day banking. In May 2024, he turned to Saffron, the building society he’d saved with as a child.
“It’s great with Saffron. I can pick up the phone to my relationship manager at any point, either to ask a question or have money moved around,” Ian commented.
“Trust also played a big part in my decision; they are a very sensibly run building society.”
A Fair Financial Playing Field for SMEs: Don’t Bank On It
Earlier this year, Saffron surveyed more than 500 SME financial decision-makers in SMEs across micro, small and medium enterprises, asking their views on the state of the banking industry from the perspective of smaller businesses, with concerning results:
SMEs:
- Feel forgotten by big banks: 62% of East of England SMEs believe that big banks put larger businesses first while 44% say providers simply don’t understand them and their needs;
- Need more flexibility: 67% of the region’s SMEs say there should be greater flexibility to meet their needs (73% UK-wide);
- Depend on personal relationships: 55% of East of England SMEs want a Relationship Manager who understands their business (66% UK)
- Worry about automation: 62% of UK SMEs fear that increased use of AI and automation will negatively impact the personal service they value, falling to 55% in the East of England;
- Are sunk in apathy: despite dissatisfaction, 69% of Eastern SMEs have no plans to switch providers, slightly above the national average of 65%.
The full report, A Fair Financial Playing Field for SMEs; Don’t Bank On It, explores the barriers smaller businesses encounter when dealing with the bigger banks: Your business savings are in the best place …right? | Saffron Building Society
How Saffron supports small business savings
Saffron provides a range dedicated business savings accounts with consistently competitive interest rates, and funds can be accessed in branch, over the phone, online and via the Saffron app.
The comprehensive range includes:
- Instant access accounts – including those with an attractive bonus
- Notice accounts – a boosted rate for funds you don’t need instant access to
- Monthly income accounts – to help boost your cashflow
- Fixed rate bonds – so you can be certain of a good return whatever happens in the economy
Additional benefits:
- Ability to deposit and withdraw cash and cheques in branch
- Exclusive ‘Business Savings Promise’ means up to 50% of fixed term funds can be accessed early if a business runs into unexpected difficulty
Dedicated business savings experts are available to help over the phone, on webchat and in branch
