The key findings of the survey are:
- 69% of respondents said their business held onto surplus cash reserves as a buffer for any unexpected events, with 41% saying their biggest worry for their business was the UK's financial crisis and 14% identifying the Eurozone financial crisis as a factor, a clear indication of how the current financial instability in the economy is impacting SMEs
- Only 18% of SMEs said their surplus cash was going to be used to expand their business.
- 91% of businesses believed that their business bank offers its best rates to new customers. However, 80% of SMEs haven't the confidence to consider banking products from other financial providers, with 37% highlighting that this was for fear of damaging the existing relationship with their bank. Two-thirds (66%) of SMEs with a surplus cash balance, do not know or are not aware of better accounts for their money.
- 38% of respondents said they would be either 'fairly likely' or 'very likely' to consider a business savings account if the account was able to be opened online.
Simon Healy, Managing Director, Savings for Aldermore, commented: "Despite SMEs being an essential factor to getting Britain back onto an even economic keel, only 18% of SMEs we surveyed were planning to invest their surplus cash in expanding their business. Tonight is the Institute of Directors' annual dinner, which The Rt Hon Michael Fallon MP, Minister for Business and Enterprise in the Department for Business, Innovation and Skills (BIS) is addressing and it's critical the Government's message about instilling confidence in the economy reaches these businesses."
"Our survey also shows that SMEs are not making the most of their surplus cash by putting it into a good savings product, even although 91% say that they are aware of better rates being offered to new customers."
"There is clearly a fear around 'rocking the boat' for SMEs with their business account bank. This need not be the case. Aldermore's deposit accounts were designed specifically to meet the needs of SMEs, a sector which is underserved and whom we believe deserve better banking. Not only do we pay a good long-term rate, they can be opened online in less than a quarter of an hour."
In June of this year, Aldermore launched its new business savings account which is the only genuine online deposit account that can be opened in 15 minutes and which does not insist a business moves its entire finances to the Bank, meaning SMEs can get a great rate of interest.
For further information about Aldermore, our financial backers and our PR contacts, please review our Notes to Editors page.