Cash flow is biggest challenge for SME businesses, study finds

Nearly half (48%) of SME business owners have stated that cash flow is currently the biggest challenge that their company is facing, Millbrook Business Finance has found.

Research by the firm has also found that the cost of living crisis and energy prices are having an impact, with 32% and 30% of firms respectively highlighting these as their main issue.

Other issues that businesses are having to deal with include supply chain disruption (26%), inflation (24%), recruitment (20%), building overheads (15%) and unexpected tax bills (8%).

Millbrook also revealed that of the firms looking to take out finance in the next 12 months, two in five (40%) stated that it was to smooth out issues with cash flow.

A further 20% said that the finance would be used to purchase equipment and machinery.

Managing director at Millbrook Business Finance, Justin Amos, said: “It comes as no surprise that so many businesses are struggling with cash flow at the present time. Whenever the economy is weakened, late payments and supressed customer demand become much more commonplace, and this can dramatically worsen cash flow for SMEs.

“When you also factor in the ongoing cost of living crisis and painfully high energy costs then it’s no wonder businesses are facing significant financial challenges.”

    Share Story:

Recent Stories

Helping landlords make their cash work harder
MoneyAge Editor, Adam Cadle, talks to Family Building Society BDMs, Arif Kara and Nathan Waller, about the resilient BTL market, the wide variety of landlords that Family Building Society caters for, and how niche products like an Offset mortgage can help improve cashflow.

An outlook on the BTL market
MoneyAge Editor, Adam Cadle, talks to Landbay senior regional account manager, Alex Witham, about current market sentiment within the BTL space and Landbay’s success in this area

Empowering advisers: A decade of education in Later Life Lending with Air Academy
Michael Griffiths is joined by chairman of Air Club and former founder and CEO of Air, Stuart Wilson, and head of the Air Academy, Daniel Holden, to look back on a decade of business focused learning at the Air Academy.


Subscribe to our newsletter to receive breaking news and other industry announcements by email.

  Please tick here to confirm you are happy to receive third party promotions from carefully selected partners.