Survey Shows Cashflow Concern For SMEs

Cashflow Concern

A recent survey undertaken by bespoke invoice finance company Platform Black showed the real concerns for UK SMEs as we head into 2014.

The survey shows 3 major concerns for the small business sector;

  1. 89% said that their biggest headache will be working out how to grow in 2014
  2. 70% said that their second major migraine will be worrying about cashflow shortages over the Xmas period
  3. 56% said that their third major migraine over the festive period will be worrying about how to get enough cashflow to finance their operations for 2014

This mean that over 2/3rds of businesses surveyed were worried about immediate cashflow and cashflow through 2014. This is a pretty serious number.

What Does This Mean?

What this says to us is that there is a real appetite to grow and push forward in 2014. It shows a positive attitude that we have not seen in abundance for a few years, so all good signs for all SMEs.

But, and here is it… The perpetual headache of cashflow remains. What is more concerning is that there remains a lack of confidence in the banks that they will step up and support growing companies.

So will this stifle hopes of growth?

Cashflow Options

Take this example;

  • In 2006 how much shopping did you do on-line? Was Google always your first point of reference for anything you wanted to know? How did you communicate with your customers back then, email?

The answer to the above, if you can believe that time flies, is that the world was somewhat different and we did things in different ways.

So, why do so many SMEs still source finance and funding in the same way they did in 2006? Doesn’t really make sense when you think of it like that, does it?

Cashflow Finance

There are a lot of very good cashflow solutions being provided by non-banks. These solutions are innovative, use the communication channels we all use, and are flexible and adaptable.

The challenge is in getting the message across that there are very good cashflow solutions out there, they are simply not in the same place they were in 2006.

Louise Beaumont, co-founder of Platform Black, said:

“This survey lays bare the true plight of the UK’s SMEs. The single biggest issue facing them is getting access to finance. What is even more concerning is that the vast majority of SMEs are totally unaware that they are able to access alternative finance from non-bank providers. If the banks and alternative finance providers could work together to ensure that the UK’s SMEs are directed to the most appropriate sources of finance for them, rather than just being rejected at the first hurdle, then we could jointly ensure that the UK’s catalyst for economic growth is provided with the financing it so desperately requires.”

Cashflow Solutions Are Not All Invoice Finance

Your business may not suit invoice finance, you may have a different trading cycle. There are still loads of options out there for you.

For example, did you know;

  • You can get an overdraft that is not from your bank?
  • You can borrow up to £150k without needing to put your house on the line?
  • Short term business loans are not payday loans, the interest cost is sensible and you can typically complete within a few days?
  • You don’t need your bank’s consent to do any of these things?

All we are saying is give peace a chance that you have options to get your cashflow sorted, just make sure you use them. Then grow and have a cracking 2014!

If you have any comments about this post then please add them as a reply, give us a call on 01293 541333 or contact us via the website here.

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