Money for a rainy day

The credit crunch has lead UK businesses to think more carefully about their money, with many more putting cash aside for a rainy day. A study from Alliance & Leicester reveals that almost half of small businesses are setting aside savings to be financially prepared for a downturn. One in six expected to use reserve funds to cover for any loss of business, while 40 per cent were saving in the event of equipment failure. Twenty-five per cent were putting away sums between £5000 to £20,000 each year. The study concludes that the news is encouraging and a well-thought out contingency plan could mean the difference between survival and disaster.