A recent study into the financial struggles faced by business owners shows that client retention is the number one stress-causing factor for UK SMEs.
According to the online study of 1,000 British entrepreneurs, 64 per cent cited ‘losing existing clients’ as their number one worry, closely followed by cash flow concerns (60 per cent) and the ability to remain profitable (58.4 per cent).
Late client payments was shown to be a major financial worry for 51.9 per cent of business owners. In May, research by YouGov for Crossflow Payments showed that in 2016 late payment by clients left UK SMEs £266 billion out of pocket, with one in ten saying the problem had intensified since the EU referendum.
“Squaring the circle of working capital needs of corporates and their suppliers will be an increasingly important lever as business works through Brexit,” says Crossflow Payments CEO Tony Duggan.
“The business community must work together in order to address this issue and explore new, innovative approaches, such as the capacity of fintech, to help solve this issue, creating a win-win for business and government.”
Our SME business experts at Beavis Morgan are available to structure your business with cashflow and profit forecasting to measure performance and maximise opportunities. We work to a pre-determined plan, to help you avoid any nasty surprises.
Through our partner businesses, BM Structured Finance and BM Advisory, we are also able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.
If you would like to discuss ways of improving the free cashflow in your business, please contact Steve Govey or your usual Beavis Morgan Partner.