Cashflow holds business back
Nearly half (42pc) of SMEs feel that cashflow is an obstacle to the success of their business, according to a Department for Business Innovation and Skills survey. Of those questioned, 7pc said cashflow difficulties were the main thing holding them back from growth.
Unpaid invoices in the small business economy is everybody’s problem. Chasing payments for overdue invoices can drain energy and time away from your business. There is a time intensive set procedure that businesses and contractors must follow in order to maximise their chances of successfully obtaining payment from clients.
Many small businesses have struggled to access credit from their banks since 2008 and many do not know where to turn to get cashflow assistance. The FSB have lobbied for more transparency in the business finance market to offer businesses a real choice of credit products and services, yet this is something that is yet to be achieved. Getting this at the right time for SMEs can be the difference between success and failure.
More clarity of the finance market is something that can really improve business in the UK.