Nearly half of SME owners are using unprotected loans to fund their business, according to research from Old Mutual Wealth.

A poll of 250 small and medium-sized business owners revealed that 48% have unprotected loans or debts, and 60% had used their personal savings to fund their business.

These findings followed the release of a quarterly survey by the Federation of Small Businesses (FSB), which reported low confidence among small businesses at the end of 2017.

In the FSB report, 73% of small businesses reported a rise in costs in Q4 2017, while 41% said their profits had fallen.

Paul Roberts, head of protection at Old Mutual Wealth, said:

"With the rise of the gig economy, more people are becoming self-employed and starting new companies and therefore the role of business protection has never been so important.

"Small business owners in particular should speak to a financial adviser, plan their ‘business will' carefully and take time to investigate the full range of protection options available to them."

Talk to us about funding your business.

Contact us for a free initial consultation and fixed quote
01892 507 280 or chat to us via email