Research from HSBC shows one in five SME’s are being squeezed by their suppliers, who are billing quicker. One in five also say fewer companies are paying them on time. At a time where cash is king, this kind of behaviour is wreaking havoc on many small firms’ cash flow. According to HSBC, 40 per cent of SMEs are raiding their savings while 24 per cent are relying on overdrafts to manage their everyday finances. Nearly one in five used their overdraft to fund big purchases, such as business vehicles and equipment, and 11 per cent are using their credit card to fund business investment. Alarm bells ring louder when this is coupled with news from the Bank of England that the average business overdraft is an average 2.7 per cent above the base rate although this figure can spiral as high as 8 per cent. But what other funding options are available to SMEs through this gloomy period? HSBC suggests asset finance and invoice discounting Do these methods actually work? Is this type of finance available to you? And is it producing the right results? Give us your comments.
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.