Finances an issue for two fifths of UK SMEs

A recent survey carried out by a money saving website has highlighted the fact that many of Britain’s small and medium-sized enterprises (SMEs) are struggling with their finances.

Two fifths of SME owners who responded to the survey said that they were in financial trouble, with many reporting cash flow problems.

In total, 732 owners of small businesses responded to the poll, which was carried out by VoucherCodesPro.co.uk. All of the respondents had set up their companies in the past three years.

Each entrepreneur was asked to describe the current financial state of his or her business. The response was startling, with 42% stating that their enterprise was in financial trouble.

The vast majority of the respondents said that they had spent too much of their capital on equipment and property. Others said that they had hired too many people, too soon. Some firms added that they were struggling to find enough clients, while others were unable to charge what they needed to make a profit.

At DJB, we help small businesses to find cheaper ways to finance the equipment and premises that they need. Financial solutions such as equipment finance, asset leasing, and operating leasing can help firms to get the equipment they need to do a professional job. This helps SMEs to be able to grow as they want, yet remain financially stable. Leasing equipment also means that enterprises of all sizes can stay flexible, while having the ability to take advantage of business opportunities.

Disclaimer: The information contained in these articles is of a general nature and no assurance of accuracy can be given. It is not a substitute for specific professional advice in your own circumstances. No action should be taken without consulting the detailed legislation or seeking professional advice. Therefore no responsibility for loss occasioned by any person acting or refraining from action as a consequence of the material can be accepted by the authors or the firm.