Small businesses lack cash flow to save, says research

Fewer than one in three small and medium businesses such as salons or spas have a business savings account, according to recent research by bank Aldermore.

Some 30% of the businesses asked in Aldermore’s “Saving SMEs” survey said that they have a saving account for their business, and 28% said they would be inclined to save more if the interest rates were increased.

Most businesses said their reason for not saving was not having an excess in cash flow.

Managing director of savings at Aldermore Simon Healy said, “It’s concerning that only a minority of small and medium-sized business in the retail sector have a savings account as surplus funds provide protection against unforeseen cash flow issues which can create real problems.”