Business savings up

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NORTH East firms are saving cash to help them seize new business opportunities, according to banking experts.

The regional team at Lloyds Bank has indicated that many businesses have been building long-term deposits over the last year, possibly to invest in new opportunities.

Its wholesale banking and markets team has revealed that long-term deposits have risen by 40 per cent in the past 12 months.

Businesses often build their cash deposits before investing in equipment, staff or acquisitions.

“We’re seeing a good mix between debt and deposits,” said area director for the North East Mike Mullaney.

“We were seeing a build in corporate deposits before, but that was just a build.

“Now the build as well as the demand we’re seeing on the debt side is more focused, with businesses looking at the type of projects the extra capacity will be used for.”