Small businesses 'setting money aside for a rainy day'

News Article - 15 April 2008
Category:

Some 45 per cent of small businesses have a so-called rainy day fund to ensure they are financially prepared for any eventuality.

These statistics have been released by Alliance & Leicester, with 28 per cent of those surveyed claiming they would use the money to cover late payments and 27 per cent to fund business growth.

Almost six in ten (57 per cent) would use the finances to cover any loss of business, something that could be monitored using SME accounting software.

Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank, said it was good that such business owners are setting aside money to protect their firm in uncertain times.

"From environmental disasters to an unexpected loss of business, a well-thought out contingency fund is an important business tool and can prove invaluable in helping a company to maintain control in a crisis," he added.

Firms looking to ensure their finances are in place could make good use of SME accounting software.

Alliance & Leicester Commercial Bank was formed in 2003 when Alliance & Leicester Business Banking, Sovereign Finance and Girobank all joined together under one name.

Article keywords:

---

More industry news

• Think tank warns UK may have already slipped back into recession
• Growing demand for HR staff in technology and international sectors
• Boosting business growth a ‘priority’ to avoid Eurozone slowdown
• HMRC launches alternative disputes pilot scheme this week
• December employment statistics disregard gloomy recruitment predictions
• Eurozone manufacturing PMI shows modest improvement
• UK scores highly for economic governance by ratings agency
• Government launches two-year project focusing on manufacturing sector
• Burden of regulation on UK businesses ‘too high’

Back to news home page »