Businesses forced to dip into savings to pay interest on debts

One in three companies with an annual turnover of £1m or more have collectively withdrawn £2.43bn from savings to help pay higher interest rates on their debts, a new report has discovered.

Research found that between March and August this year, 36% of firms have withdrawn from their deposit accounts, with the average withdrawal worth £35,270. However, 4% of businesses have withdrawn £100,000 or more to help pay the increased interest rates.

According to Investec Bank’s findings, a quarter of businesses turning over £1m or more have withdrawn under £10,000, while 6% have withdrawn between £10,000 and £50,000.

Read full article: http://www.growingbusiness.co.uk/businesses-forced-to-dip-into-savings-to-pay-interest-on-debts.html

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