Alliance and Leicester finds businesses go big on cash

A new survey from Alliance and Leicester reveals that businesses are likely to use cash for larger as well as small purchases, contrary to popular belief.

Reports have found that for all UK based businesses that regularly use cash, over 25 per cent of all cash transactions are over £80 in value, suggesting that managers are not reluctant to rely on cash for more significant dealings.

"The premise that retailers, hoteliers and other cash handling businesses are all about 'loose change' is a myth," commented Russell Carter, head of cash at Alliance & Leicester Commercial Bank.

"With over a quarter of businesses seeing typical cash transactions of more than £80, cash still has a major role to play."

Regionally, London has the highest usage rate for big cash transactions, whereas firms in the Midlands and Wales are the least likely to use cash for transactions over £80. In all, one in ten businesses stated that their average cash transaction is less than £5.