Business owners warned of ''hidden cost of Christmas'' - commercial mortgages

18 December 2007

Firms with their own commercial mortgages have been warned to be on their guard when it comes to considering the "hidden cost of Christmas" this year.

Research from Alliance & Leicester has found that numerous small businesses intend to spend extra money over the period on everything from the traditional Christmas party to gifts for staff and clients.

In total, an average of £430 extra will be spent by each small business in the UK, the study revealed.

"It is worrying that many business owners are expecting to pay for the cost of Christmas with their own personal finances or company profits," said Steve Jennings, director of business banking at Alliance & Leicester Commercial Bank.

"Business owners need to ensure that they are always prepared for the unexpected, such as the hidden cost of Christmas.

"Small businesses can prepare now for 2008 by looking for smart ways to reduce outgoings and planning ahead, putting them on a surer financial footing for the future," Mr Jennings continued.

The study comes as new research from the British Bankers Association (BBA) has suggested that small firms have been largely unaffected by the credit crunch.