SMEs use loans to manage cashflow rather than invest in their firms – FSB
According to the latest Federation of Small Business (FSB) Voice of Small Business Index for the fourth quarter of last year, almost 40 per cent of SMEs that made successful finance applications in the last quarter of 2019 used the sums raised to manage their cashflow rather than invest in their operations.
FSB National Chair Mike Cherry said that if “this Government wants to leave a lasting legacy amongst small businesses, it has to make ending the UK’s late payment crisis a top priority.”
The problem of late payments forces nearly 50,000 SMEs to close every year, with many of the worst offenders being large businesses.
When it comes to cashflow, SMEs have a tight ship to run. It is therefore essential that business owners receive the specialist support and guidance they need to make effective decisions both now and for the future, as well as access to the right financial products suited to their specific business needs.
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.