From today, UK banks will have to be more upfront about what they offer their small business customers.

For too long, SMEs have struggled to understand everything from loans to overdrafts, due to a lack of clear information from some banks.

Now the Competition and Markets Authority (CMA) is demanding banks be clearer about the cost of borrowing for SMEs. From today, all providers of unsecured loans and overdrafts to SMEs, for values up to £25,000, will have to publish and clearly display the rates they will charge. The CMA has also asked that banks make things easier for business customers by using similar measurements to those used on personal loans and credit cards.

The news has been welcomed by the Federation of Small Businesses (FSB).

Mike Cherry, national chairman of the FSB, said: "Small businesses have far more in common with consumers than with large corporations, and so deserve similar protections. From today, capping overdraft fees and enforcing proper publication of loan rates will help the many small business owners that get stung by unexpected charges and hiked repayments every year. Over the long-term, we need to look closely at how we make small firms aware of all the different finance options available to them.

"The ultimate aim is a future where open banking ensures all businesses receive fair treatment from the provider that's right for them."

Here at Punchline, we hope the new rules will make it easier for business customers to shop around to find the account that works best for them.

What do you think? Have you been stung by unexpected business banking charges? Email mark@moosemarketingandpr.co.uk