Small and microbusinesses operating with the nation’s capital hold the most cash in business savings accounts, but are closely followed by SMEs in the West Midlands, finds Hampshire Trust Bank.
The lending society commissioned a piece of research whereby 500 SME owners from around the UK were asked about the money they hold in savings accounts.
The research found that London and West Midland-based SMEs have significantly higher savings than businesses in other regions. On average, London SMEs hold more than half a million pounds (£539,510) in business savings accounts, with the West Midlands holding an average of £394,405.
Despite London finishing top of the charts, West Midland SMEs are actually the biggest savers, holding 73 per cent of their funds in a savings account, compared to London’s 59 per cent.
‘‘There is huge regional variation in the amounts businesses are holding in their current and savings accounts,’’ stated Stuart Hulme, head of savings at Hampshire Trust Bank.
‘‘What’s revealing is that the businesses which have lower overall amounts of money in the North East, East and Yorkshire & Humberside, are putting a significant percentage of the cash they have available into savings accounts, indicating these businesses are confidently planning for the future.’’