Less than a third of retail Small and Medium-sized Enterprises (SMEs) have a business savings account, according to research released by retail bank, Aldermore.
The research, titled Saving SMEs, found the main reason retailers did not have a business savings account was that their business did not have excess cash flow (35%).
Commenting on the findings, Aldermore director of savings Simon Healy said: “It is concerning that only a minority of small and medium-sized businesses in the retail 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.”
Only 28% of the 1,005 firms surveyed said they would be inclined to save more in the event of an interest rate increase by the Bank of England, while three in 10 retailers believe that an increase in interest rates would have a positive effect on their business.