Some 88 per cent of small businesses accept both cash and cheque payments, according to new research.

Credit and debt card payments are welcomed by 56 per cent of small companies, a study conducted by US-based Dove Consulting reveals.

Additionally, the survey of 952 firms found that small enterprises receive an average of 259 payments from customers per month, the majority of which were made with cash or cheques.

"There is clearly an opportunity for financial institutions and payment processors to deepen customer relationships and offer specific services for the small business sector," said Dove Consulting director Laura Fuller, who managed the study.

Another revelation of the study is that 59 per cent of small businesses use outside resources, such as accountants and financial institutions, to aid them in managing their payments.

Earlier this month, the Federation of Small Businesses suggested that the proposed closure of several post offices across the UK could hurt smaller firms, as many of them used the branches for financial services.