SME Cash Flow Issues Exacerbated by Cost-of-Living Crisis

SME Cash Flow Issues Exacerbated by Cost-of-Living Crisis

Almost half (48%) of small to medium enterprises cited cash flow as the single largest challenge their business was facing, according to research by Millbrook Business Finance.

This was followed by the cost-of-living crisis (32%) and energy prices (30%).

The firm surveyed its database of SME owners and directors in October 2023 to establish the leading pain points for businesses.

Other issues businesses were facing included:

  • Supply chain disruption (26%)
  • Inflation (24%)
  • Recruitment (20%)
  • Building overheads (15%)
  • Unexpected tax bills (8%)

For those planning on taking out finance in the next 12 months, the most prominent reason was to smooth out issues with cash flow (40%), followed by buying machinery and equipment and releasing equity (20%).

Justin Amos, Managing Director of Millbrook Business Finance, 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 suppressed 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.”

Improve cash flow with Millbrook Business Finance

At Millbrook, we understand that every business is unique. That's why we offer a range of tailored business finance solutions for SMEs to fit your specific requirements, including boosting cash flow.

Our goal is to simplify the application process, providing businesses with quick and easy access to the capital they need to thrive. With our support, you can take confident steps towards achieving your business objectives and securing a prosperous future.

Take a look at our business finance specialists within Millbrook, who each offer a range of specialisms and skills which your business can harness. Alternatively, you can learn more about business finance and the opportunities it provides SMEs in our complete guide to business finance.

Ready to take the next step? You can submit a quick enquiry to check your eligibility or speak to one of our finance broker experts now.

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