15th April 2008
Almost half of small businesses are putting money aside for uncertain times ahead, according to research by Alliance & Leicester.
Of 600 small business owners polled, some 45% said they are paying money into contingency funds. Nearly a quarter of small businesses (23%) said they were putting aside between £5,000 and £20,000 a year, with 32% making regular payments to savings funds out of monthly profits and 39% making payments when they can throughout the year.
Over half (57%) of those saving expected to use the sum to cover any loss of business, and more than four in ten (42%) planned to replace equipment in the event of unexpected failure.
Almost three in ten (28%) said they may use their savings to cover late payments and over a quarter (27%) to fund business growth.
Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank, said it was good to see many business taking precautions.
"With economic uncertainty, cash is even more critical for small businesses – therefore, it is important to shop around to ensure they are getting the best returns possible," he added.
Nearly half of SMEs 'putting money aside'
Of 600 small business owners polled, some 45% said they are paying money into contingency funds. Nearly a quarter of small businesses (23%) said they were putting aside between £5,000 and £20,000 a year, with 32% making regular payments to savings funds out of monthly profits and 39% making payments when they can throughout the year.
Over half (57%) of those saving expected to use the sum to cover any loss of business, and more than four in ten (42%) planned to replace equipment in the event of unexpected failure.
Almost three in ten (28%) said they may use their savings to cover late payments and over a quarter (27%) to fund business growth.
Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank, said it was good to see many business taking precautions.
"With economic uncertainty, cash is even more critical for small businesses – therefore, it is important to shop around to ensure they are getting the best returns possible," he added.
Tags: Office
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