Financial and Mental Health: A Direct Link For SME Owners?

Forbes recently produced an article that discussed the direct link between poor financial health and mental health issues for SME business owners. It looked at causes such feeling out of control of finances or concerns about financial stability and futureproofing.

“Research from MarketFinance found that most small business owners believe they will not survive into 2021, with only a quarter believing they will make it, a shocking statistic. Late payments, low savings, and poor cash flow are their main concerns – with the data showing almost half of the businesses surveyed are still waiting to be paid for work completed in the first lockdown, and almost half are withholding payments to suppliers themselves because of cash flow fears”.

Since the COVID-19 pandemic businesses have had to face an economic environment that has not been encountered before, with government support helping to bolster the economy but country-wide lockdowns causing long-term damage. The article hopes to highlight the benefits for SMEs of adopting fintech software to streamline their business finance processes and accounting procedures.

“Joanna Morris, head of insight at Hitachi Capital Business Finance, commented, “The pressure for businesses to embrace technology continues to mount, as those that have already reaped the benefits of their competitive advantage. The case for investing in a business’s tech agility has never been stronger.”

Director of My Debt Recovery, Sean Husband, commented:

“We absolutely agree that SMEs are the lifeblood of the UK economy and without positive cash flow and resilience, it will be a bleak picture for many in the coming months. We champion the use of technology and embrace it as a key tool during our debt recovery process but personal communication cannot be underestimated when dealing with delicate situations such as late payments and debt recovery. Automated reminders for unpaid invoices will often add to the stress of a business owner in financial difficulties and our team often find that taking a caring and positive approach in their communication with debtors will end in a successful resolution for all parties involved.”

Read the full Forbes article here.

*Source: https://www.forbes.com/sites/lawrencewintermeyer/2020/12/17/covid-19-has-put-many-british-businesses-on-life-support-systems–can-fintech-help-save-uk-smes/?sh=266bad6c3dc7