A study has found that many firms are overdrawn or owe money from loans.
Many organisations with business accounts remain in debt to their bank and building society as the effects of the worldwide economic slump continue to cause problems, new research has shown.
According to a study conducted by Legal General and the Institute of Directors, around one third of all companies – 32 per cent – have some sort of corporate debt following the recession, with nearly half – 48 per cent – indicating this was held with their business banking firm through personal loans and overdrafts.
This investigation was intended to gain a better understanding of the security of assets, shares and cash flow of businesses in the UK and found that despite this debt, many firms remain more optimistic about their growth and profitability prospects in 2011.
However, Clare Harrop, head of specialist protection at Legal General, warned: “Too many businesses still have no cover in place for unexpected events and this poses a huge potential risk for their success and survival.”
This comes after research by the Fair Investment Company, which found that 98 per cent of charities are dissatisfied with their business accounts.
Meanwhile, another study has found that 98 per cent of charities are dissatisfied with their business account rate.
New research has found that almost every charity across the UK is unhappy with the benefits they are currently receiving from their business account.
According to a study conducted by the Fair Investment Company (FIC), some 98 per cent of such organisations are dissatisfied with regards to their business banking products, meaning that many may wish to compare savings on packages available in the post-recession environment.
The investigation revealed that the average charity savings account rate is 0.39 per cent, a figure which has caused the level of antipathy towards banks and building societies to remain high.
Julie Smith, head of savings at the FIC, commented: “While all savings rates are low, it is charities, businesses and other groups that are suffering the most, and that is something we want to try and change.”
A survey conducted by Deloitte on behalf of YouGov found recently that 32 per cent of individuals would like more competition to be present in the banking sector.
