February 2nd, 2018.

Research from Aldermore, the specialist bank, shows many self-employed and small businesses are holding inadequate amounts of cash savings, leaving them unprepared for unforeseen events.

The data shows more than one fifth (22 per cent) of businesses have no cash savings, while four-in-ten (40 per cent) hold less than £1,000. Worryingly, fewer than one in ten of those firms with a turnover of less than £10,000 held more than £1,000 in savings.

Business resilience is tested when the self-employed face unforeseen events, especially ill-health. More than half (54 per cent) say they have periods where they have been unable to earn money because of ill-health. Of those businesses who had experienced a period when they were unable to work, almost half (48 per cent) remained off work for more than one month. One fifth (22 per cent) lost over a third of the working year.

Typically, this costs businesses around £4,000 in lost revenues.

Lack of savings is not restricted to businesses with a low turnover.

Almost one in ten (8 per cent) businesses with a turnover of......

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