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Cash Flow Concerns for Small Businsses

Cash flow is still one of the big concerns for many companies within the UK economy, especially when it comes to small businesses. According to a recent survey by recruitment specialists Robert Half UK, cash flow is one of the most significant concerns for a huge number of CFOs within the UK’s small businesses. Cash flow is the life blood of any business, no matter the size, but addressing the problem can often be tricky – this is where invoice finance can help, especially if your business is struggling with late payment from customers.

According to the survey, more than 4 in 10 (41%) of CFOs in the UK wide interviews said cash flow was one of the biggest concerns in the running of their company. Specifically for small and private companies, this figure rose closer to half (46%). This shows that while cash flow is a general concern for many larger businesses as well, it’s extremely pervasive when it comes to businesses on the smaller end of the scale.

Regionally, businesses in the North and Scotland were most concerned with cash flow(48%), compared to London and the South East where ‘only’ 37% were concerned about their cash flow. There are more figures to reveal why this might be the case – the North and Scotland suffer most from late customer payment (71%) as well as from the problems of competitive pricing and low margins (54%). 

6 in 10 of those interviewed said the main problem leading to cash flow issues was late customer payment, rising from just over a quarter in 2011. Late payment is a hard problem to solve, especially for small businesses caught up in supply chains, and despite government initiatives to help. Invoice finance is one targeted way to ease the problem – by unlocking up to 90% of the value of your invoice within 24 hours, late payment no longer needs to be a crippling cash flow problem.

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