the business ladder

According to a study of 750 small firms by business saving advisors Make It Cheaper and the Centre for Economic and Business Research (CEBR), 47% of respondents have had to inject their own personal cash into their company this year.

A huge 89% of small businesses surveyed judged the UK as “unbearably expensive” to do business in, leading many to support their company with their own money to survive.

Managing director of Make It Cheaper Jonathan Elliott commented, “The effects of squeezed margins and cost increases are not only threatening businesses, but the financial security of their owners and families.”

27% have turned to friends/family for loans to cover growing costs while taking out a personal overdraft (26%), bank loan (22%) or credit card (25%) were also common, as well as 13% going further and re-mortgaging their home.

According to Make It Cheaper’s research, the amount raised from personal funding was over £20,400 on average per business.

Elliott added that “It is extremely concerning that small business owners have been compelled to take the drastic step of placing their own financial stability in jeopardy to keep the company afloat.

“However, many small businesses feel they have no alternative, as costs rise and traditional lines of credit remain cut off.”

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