The Press and Journal (Inverness, Highlands, and Islands)
Virus puts pressure on SME cash flow
More than two-thirds (69%) of UK small and medium-sized enterprises (SMEs) surveyed by business lender MarketFinance reported significant pressures on cash levels due to the coronavirus.
MarketFinance said this was “in large part” down to businesses paying for supplies earlier than anticipated because of stockpiling, and fears of deeper disruptions to road, air and rail links.
Payments are also being delayed on orders and completed work.
Nearly three-quarters (74%) of SME owners reported invoices due to be settled at the end of February had not been
“Businesses are feeling a palpable sense of helplessness and isolation”
paid, as of March 10, and these were not expected to be settled before the end of the month.
More than one-third (36%) feared their firms would not survive until Easter without new finance to bolster their business.
Meanwhile, as economic conditions worsen – and with the possibility of widespread quarantine implemented across parts of the country – businesses will need to have financial and operational contingency plans in place to protect jobs, industry and communities.
MarketFinance chief executive Anil Stocker said: “The impact of the coronavirus spread is being felt by SMEs across the UK as finance and supply chains are disrupted.
“At the best of times, only around half of these businesses are cash flowpositive.
“Today, businesses are feeling a palpable sense of helplessness and isolation, and there is a lack of specific information on how to cope with the crisis.”