According to the latest industry research, 2.5 million (44 per cent) UK small and medium-sized enterprises (SMEs) are struggling with cash flow as they prepare for Brexit.
Research indicated that in the second quarter almost a third (29 per cent) of SMEs are actively using funding and sourcing external finance, a six per cent increase since the first quarter of 2019.
In the first quarter, 72 per cent of SME owners invested on average £16,400 more than expected, and 69 per cent are preparing to invest on average an additional £81,000 in the third quarter.
Nearly 50 per cent of UK SME owners believe there will be a recession this year and as a result, they have turned to quick-fix funding, with 26 per cent turning to credit cards, bank overdrafts or borrowing from family and friends.
Due to challenging conditions such as increased competition, rise in material costs and the broader economy stalling, businesses are turning to source additional finance to survive rather than investing in their business for growth.
Subsequently, it is essential for SMEs to be aware of all the funding options available to them, so they can secure sustainable investments. To find out how we can assist you and your business please contact us today.