Cash Flow Problems Threatening SMBs: IGF

Small Business survey-2010, conducted by IGF, reports that, during the past two years of severe economic downturn, 38% of the SMEs in UK have suffered problems due to cash flows and 32% were fearing closure of their business operations due to the problems in cashflows.

The reasons cited were, late payment by debtors(56%), uncontrollable economic factors(47%) and loss in revenue(45%).

The major regions of UK hit by this problem are England (46%), London and South East regions(30%). Of the companies suffering from this problem in London, 46% of them have no hopes on the future of their business, and cited, late payment by debtors (69%) and loss of revenue(62%) as the reasons.

The cash flows were found to be a major concern in sectors of building and construction(54%) and recruitment and business services sector(24%).

The survey was conducted on 200 SMBs from various sectors, having turn over between £1m and £25m.

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