UK Businesses Are Suffering From Cash Flow Problems

Many UK businesses constantly suffer from cash flow problems. This is caused by an economy which is still suffering the after affects of the recession. Cash flow problems cause other businesses to suffer cash flow problems and it can be a vicious cycle.

To add to this, cash flow problems stop businesses from growing and thriving which in turn stops them from employing more people. The affects of a lack of cash flow is not isolated to the businesses that it affects.

NatWest have collated some interesting statistics. 1 in 5 companies are owed a staggering £50,000 to £100,000 in payments which are late each and every month. Manufacturing companies were on average more susceptible to bad debt than most other types of business. This sort of debt can cause some major problems for businesses.

Even government agencies and local councils have a habit of paying late and therefore causing cash flow problems to many of the businesses that they owe money to.

One way to help your cash flow problems is to use invoice factoring and invoice discounting services which can help to ease the burden of debt. The only problem with such services is that they tend to cost you a fair bit and can cut into your profit margins.