Businesses reluctant to borrow

Businesses prefer to wait for stronger signs of economic recovery before borrowing from banks.


Businesses prefer to wait for stronger signs of economic recovery before borrowing from banks.

Businesses prefer to wait for stronger signs of economic recovery before borrowing from banks.

According to a study by Investec Bank of 201 businesses with an annual turnover of £1 million or more, 63 per cent had no desire to borrow money during the summer.

Some 9 per cent of businesses with a turnover of £1 million or more have cancelled or postponed business development plans.

Jack Jones of Investec says: ‘With a high degree of uncertainty over the economy, many businesses are reluctant to borrow money from their high street banks, and are either keeping their savings in deposit accounts or using it to pay bills.’

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