A comprehensive study carried out by Albion Ventures shows that 21% of UK based Small and Medium-sized Enterprises (SMEs) find cash flow a major hurdle when it comes to growing their business.

The problem was found to be an issue for all kinds of firms across every sector. However, sole traders felt the issue more than most, with 25% of them feeling that cash flow obstacles were holding them back.

Firms that employed more than 50 employees were reportedly less concerned than those that managed fewer. Of these larger SMEs, only 12% felt that cash flow issues were stopping them from growing their productivity. From a regional point of view, companies in Wales and the South West were most worried about cash flow.

Of all of the sectors surveyed, the transport and communications industries were the ones with the most cash flow concerns, often due to high unit costs. The report notes that this could be why this sector feels the pressure the most. The same is true for telecommunications, because most projects have high capital costs.

Two thirds of the 450 firms who took part in the survey were expecting to see growth in the next two years, while a third of the enterprises are planning to raise finance over the next year. The majority of companies (27%) were planning to borrow for business development, and 23% were aiming to use the cash raised to expand their premises.

At DJB, we provide a range of innovative business cash flow solutions, which suit all kinds of firms looking to grow.

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