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New research commissioned by finance provider, Nucleus Commercial Finance, has found that one in four SMEs in the UK has faced financial difficulties, within the last 12 months.
The research found that nearly a quarter of business owners (24%) were having to use their own personal savings in an attempt to address their financial issues. 27% of SMEs took no action all to seek the funds they required.
When asked what type of financial issues affected their business, SMEs responded:
- 48% – impact on margins due to price increases
- 42% – unforeseen expenses
- 39% – late payments
- 38% – decrease in sales
- 30% – loss of a significant client
- 27% – loss of exceptional employee
Chirag Shah, chief executive officer at Nucleus Commercial Finance, said:
“We often see that businesses face financial difficulties, however, what’s alarming is that SME owners are using personal savings to support their businesses, or even more worryingly, not taking any action at all.
As we enter a new year, we encourage business owners to be more vigilant of their finances and be more aggressive when it comes to growing revenue. Entrepreneurs should rest assured that there are options available and as an industry, we should be educating them on the benefits of seeking external finance. Together we can help SMEs be better equipped to tackle any financial challenges; boosting performance and ultimately improving the country’s GDP.”
If you are facing financial difficulties, contact our team on 0800 009 6106 or hello@mydebtrecovery.co.uk. Whether it’s collecting debts on your behalf or looking at finance options, we can help.
