Significant number of SME owners using personal savings to keep business trading

11 Jun

Research carried out by finance provider Nucleus Commercial Finance has suggested that one in seven small and medium-sized enterprise (SME) owners have used personal savings to keep their business trading.

44% of business owners polled stated that their firm has been negatively impacted by the coronavirus (COVID-19) pandemic. A quarter of businesses have taken out a loan or have extended an existing one, whilst 7% have applied for additional funding.

The findings come amidst reports that almost half of government coronavirus Bounce Back Loans may never be repaid.

Commenting on the research, Chirag Shah, Chief Executive of Nucleus Commercial Finance, said: 'While some owners might believe that this is the best option for short-term cashflow needs, taking this measure can have a detrimental effect on the business and also their personal situation, especially if activity does not improve immediately once lockdown measures are eased.'

acca logo

CHARTERED CERTIFIED ACCOUNTANTS

We are registered as auditors and regulated for a range of investment business activities in the United Kingdom by the Association of Chartered Certified Accountants – the global body for professional accountants.

NEWSWIRE

Register to receive our monthly Newswire once a month and we'll send you an email packed full of essential business news and handy tax tips to help save you money.

REGISTER NOW