LESS than a third (32%) of Small and Medium-sized Enterprises (SMEs) in the construction sector has a business savings account, according to research released by Aldermore.
The research titled ‘Saving SMEs’ that looks at saving and banking habit of British businesses, also found that in the event of an interest rate increase by the Bank of England only 29% say they will be inclined to save more.
The main findings from the construction industry include:
· 32% of SMEs have a business savings account;
· Just over a third (34%) of businesses felt their bank really understands their business banking needs;
· Of those businesses that do not have a business savings account, almost a third (31%) said their business doesn’t have excess cash flow (31%); and
· A quarter 25% of SMEs believed that an increase in interest rates would have a positive effect on their business.
Commenting on the findings, Simon Healy, Managing Director of Savings at Aldermore said, ““It is concerning that only a minority of small and medium-sized businesses in the construction sector have a savings account, as surplus funds provide protection against unforeseen cash flow issues which can create real problems. It is important to ensure that any surplus funds are working as hard as business owners do. There are significant differences in the interest rates available on deposit accounts and it is important that businesses do not lose out on maximising the return they get on their hard-earned surplus funds.”