The business banking war is hotting up, with banks increasing the stakes in an attempt to take customers away from their competition.

Westpac fired the latest salvo with its offer to businesses – switch before June 30 and they will waive all establishment fees on loans over $10,000 and up to $10 million; zero account-keeping fees on transaction accounts for a year; and up to $20,000 in switching costs covered on new business loans over $100,000.

St George is offering a $50,000 cap on switching and establishment costs for loans of more than $250,000.

Westpac general manager of commercial and agriculture, Andrew Tait, said business owners were moving from “cautious to confident” and he hoped they would leap on their offer to get them ready for the next phase of growth.

“The campaign has been quite successful to date. It was designed to attract customers who bank with our competitors to switch to Westpac.

“We are seeing real evidence that customers are getting ready for growth.”

NAB state manager Richard Kennerley said he couldn’t stress enough how important its relationship-banking model was with its customers.

“It’s often spoken of but rarely delivered and we have a real depth of understanding of our customers. It stands us apart from our rivals,” Mr Kennerley said.

“We stayed open during the GFC and that was a deliberate strategy on our part and that is paying dividends.

But RBS banking analyst John Buonaccorsi called the latest offers “gimmicks”.

“It is still pretty expensive in the SME end and there are deals going out there but most of them are gimmicks.

“There is nothing on offer like what NAB is doing in housing loans. The home deals probably won them some brownie points in Canberra but not much else,” he said.

“All the banks say they want more share, most of the banks are hiring more business lenders and expanding business centres across Australia, unlike retail. To justify that they have got to pull new business in and small business is growing less than the housing loans but it has got a better long-term outlook.”

Until July 31, St George will pay up to $50,000 to businesses to help pay switching costs, as it attempts to improve its lending reputation among corporate customers.

Article: http://www.news.com.au/money/banks-slash-fees-to-lure-business/story-e6frfmci-1226072772234#ixzz1PCPFb0He