Looking back over the past ten years in the UK financial service industry and we can see the problems caused (to Bank of Scotland and RBS) by providing too much credit.
Basic economics was ignored in the pursuit of growth at all costs. The banking industry has had a wake up call, and the alarm bell continues to ring. Maybe in 2012 to 2015 things may get better.
But, there are other sides to the UK financial services industry, which are not at such a disdvantage. Commercial insurance has been a mainstay of British financial services, long before banking raked in the profits.
Some people consider the insurance industry as needing a shake up, but those if us that work in it, whilst we accept there are faults, are quite happy most of the time to work in an industry that plods along.
There are some innovations though and as young blood comes into the industry, these are happening more often and nearly always they are to the benefit of the customer.
If you are looking for a small business insurance quote, one of the main things you look at is the premium. You will usually also want to consider spreading the cost of this premium. One of the recent developments we have seen is that insurers are quite keen to allow you to spread the cost over 6, 10 or 12 months.
Many of the newer, more modern insurers, are prepared to provide credit to allow this to be interest free, so you do not pay extra. Unlike the banks, they are not giving away vast millions of pounds credit, without much chance of getting it back.
What they will do is allow credit for your insurance premium, they are able to do this because, if you default, the insurance is cancelled so there is no loss of money for the insurers.
So, if you are looking to spread the cost, look for the 0% option.