Small business owners could alleviate pressure on their cashflow by paying more attention to business savings interest, according to a report.
Aldermore polled 950 SME owners and sole traders and found that 62% are earning no interest on their business savings at all.
Over half (53%) are earning less than £300 a year in interest on their business savings, while 65% had the same business bank account as their personal account provider.
While consistently low interest rates offer little incentive to save, 33% of respondents said they were spending their cash too quickly each month.
Around a fifth (19%) claim their bank does not offer high enough rates for noticeable interest to be earned.
Ewan Edwards, head of savings at Aldermore, is urging sole traders and business owners to conduct due diligence to find the best banking products on the market.
Edwards said:
“It is vital business owners make their surplus cash work harder to provide additional financial support and to strengthen financial resilience.
“Many businesses could be missing out on additional income that would be a boost when dealing with the multiple financial pressures of running a business.
“We encourage all business owners to shop around to find the best account on offer, as this can make a positive difference in the long term.”
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