A new survey has suggested that approximately two-thirds (66%) of small businesses and SMEs are having cashflow issues due to the rising price of costs and overheads. 41% of respondents indicated they had less leeway than they did last year in terms of business costs, whilst almost seven in 10 have seen their ambitions to grow stunted by cashflow problems. Although inflation has dropped below 3% in recent months, small business inflation is currently at 6.7%, according to the Forum of Private Business quarterly survey. Increasing costs associated with energy prices and VAT have been the main components enabling business inflation to remain high, the FPB senior policy advisor Alex Jackman stated. The Forum have suggested a scrapping of proposed fuel duty rises and a ‘sympathetic’ introduction of new pension policy to help ease pressures on small businesses, although neither are looking likely in the current climate.
Can Invoice Finance help?
As bank funding has become harder to access for many small businesses and SMEs, it can be tricky to find an appropriate business finance solution. But more and more firms are seeing the benefits of increased cashflow through invoice finance solutions such as invoice discounting and invoice factoring. By releasing cash tied up in unpaid invoices, business owners can free up their cashflow and get their hands on the cash they are owed quickly and simply. Why not browse our website today to find out more about how invoice finance works, or give our team of experts a call on 0845 602 9354.