According to a recent survey, nearly 2.5 million businesses (44% of the UK’s SME’s) are struggling with cash flow as they look to prepare for Brexit.
1000 senior business decision makers nationwide were surveyed on a quarterly basis and the report found that there has been a 6% rise (up to 29%) in the number of SME’s actively utilising funding in the past quarter. On top of this, 72% of SME’s are investing an average of £16,400 more than was predicted at the close of Q1.
This additional investment is being used to offset the risks associated with a no deal Brexit, according to economic analysis from the PMIs and ONS.
Moreover, 69% of SMEs are prepared to further invest in their businesses in Q3 & Q4 as they attempt to protect themselves from any negative impacts of Brexit. Whilst this signifies the end of over a year of falling investment, it is not a return to the levels last seen in Q4 2017 (80%).
With half of UK SME’s believing there will be a recession in 2019/20, quick and short term funding solutions have proven popular with 26% of those businesses using credit cards, bank overdrafts and borrowing from family and friends. Added to this, rises in material costs and increasing competition are ramping up the pressure on SME’s.
What’s not certain at this stage is what any eventual Brexit will look like, be that with or without a deal. The uncertainty that we have seen impact the UK economy for some time now is set to continue and with that uncertainty comes an increasing necessity for SME’s to be aware of all the funding options available to them before committing to more lending.
If you would like to speak to us about your own finance facilities or would like to explore options, please email us at: info@thebusinessboard.co.uk or call our office number on 0118 338 1818.
We look forward to speaking with you.
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