Many businesses that do have cash are hanging onto it.
Governments are trying to keep cash moving by cutting interest rates and printing money through quantitative easing.
Why? Simply put, money, specifically cash, makes the business world go round.
But the cash impact of COVID-19 on small and medium business owners is dramatic.
The Bstar 2020/21 SME Research Report shows that, even before the crisis, 78% of SMEs held either no cash reserves (20%) or ‘limited’ cash reserves (58%).
Cash is king. When it comes to ensuring your business not only survives but thrives, it’s the truth. And yet, 15% of SMEs said cash was a continual headache, with 62% reporting medium to high levels of concern.
Business owners need to get ahead of the cash issue and make plans to minimise impacts and risks.
We’re already helping our clients develop strategies and plans to get through this challenging time.
If you’re thinking about restructuring finance arrangements, we can help with putting together a proposal for your bank (or finance partner) and to negotiate new arrangements. Read more key SME insights in our free SME research report
