Businesses suffer a cash flow shortage

BUSINESS owners in the Midlands have claimed they have little to no funds to see them through another lockdown, a study has found.

The survey of 200 business owners in the region, commissioned by Prime Accountants Group, found that almost 70 per cent of businesses did not have the means to survive a rainy day, with close to a third not even knowing how much money is currently in their business account.

It also emerged that almost 90 per cent of business owners across the Midlands don’t even have a contingency plan in place if a key person in the business was to die or leave suddenly.

Unsurprisingly, of those surveyed, almost 50 per cent claimed their business significantly suffered with the onset of the pandemic.

Kevin Johns, managing director of Prime Accountants Group, said: “Covid-19 and various lockdowns over the past 18 months have led to a sharp rise in unemployment and business failure, which is not surprising.

“However, the results of the survey show that most businesses seem to be living in the present and not planning effectively for a brighter future.

“While I do understand it is important to endure these uncertain times as best as possible, businesses will significantly benefit if they take the time to plan and implement financial strategies that can impact and improve their future.”