Small Businesses Save for a Rainy Day

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UK based Alliance & Leicester Commercial Bank have announced a new range of deposit and investment accounts for businesses to assist them in saving additional funds to prepare for any adverse effects of the Credit Crunch.

Alliance & Leicester Commercial Bank research has shown that small businesses across the UK are saving for a rainy day. With the current economic climate proving to be as unpredictable as the British weather, it is reassuring to know that 45% of small businesses have funds set aside in order to be financially prepared, whatever the weather.

The research shows that small businesses prefer to plan ahead, meaning that they are prepared for any eventuality.
The survey carried out by Alliance & Leicester Commercial Bank showed that more than half of the businesses that were asked expected to use the funds in their business savings account to cover any loss of business, while 42% of respondents had the money set aside for unexpected equipment failure. More than a quarter planned to use the savings to fund growth of their business.

Despite the uncertain economic climate, the survey into business banking practices revealed that nearly a quarter of small businesses are able to save between £5,000 to £20,000 per year, and just under 30% said that they did not plan to draw on the sum, instead leaving it in their business savings account for long term growth.
According to the results of the research, there are two main ways in which small businesses put aside their money. Around a third put a fixed amount of money into their business deposit account on a regular basis, while around 40% make payments based on their cash flow.

Research has also shown that small businesses in the UK are missing out on over half a billion pounds each year because they fail to shop around for the best business deposit account. Alliance & Leicester Commercial Bank has launched http://www.interest-challenge.co.uk to help companies find out much additional interest their surplus funds could be earning.
For information about the range of business deposit accounts that are available from Alliance & Leicester Commercial Bank, business owners should call free 0800 587 0800 or visit http://www.alliance-leicestercommercialbank.co.uk.

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