- 29th June 2020
- Posted by: Suzy Hill
- Category: Personal Tax, Business News
Significant number of SME owners using personal savings to keep business trading
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.’