Cash‑Flow Chaos: Brits Tumble Over Rising Costs, Late Bills, and Other Financial Fumbles
Shawbrook’s latest survey throws a spotlight on the lean and mean world of UK business finance. Twenty‑customers per cent say they’re wrestling with cash‑flow headaches that could scare them straight, and a chunky half (49%) admit that liquidity is the biggest pain point. The headlines? Rising costs, dragging client payments, and unexpected outlays are flipping the switches on many shop‑keepers, freelancers, and family‑run enterprises.
What’s Killing the Cash Flow?
- Costly Inflation – 46% attribute their cash crunch to soaring prices.
- Unpaid Invoices – 37% blame slow, late payments from customers.
- Sales Slump – 27% feel the pinch of sluggish sales.
- Unexpected Expenses – 26% are derailed by surprise costs.
- Seasonal and Volatile Sales – 25% juggle unpredictable revenue.
- Complex Supply Chains – 23% find their logistics tangled up.
Real‑World Stress on Real People
This financial turmoil isn’t just numbers on a balance sheet; it’s men, women, and teams feeling it day‑to‑day.
- 38% of decision makers say cash flow is a major stressor for both them and their bosses.
- 22% reported that the money crunch has badly hit their own mental health.
- 30% fear it’s killing wipeness in their staff.
Growth Dreams, Cash‑Flow Lemons
A 30% of businesses have had to put expansion plans on the back burner, while another 27% found themselves out on a limb trying to secure fresh funding.
Personal Stakes & Contingency Plans
In dire circumstances, one in seven brave souls (~28%) are dipping into their own pockets to dish out business expenses. Meanwhile, 21% are behind on supplier payments, and a ticking 10% have tossed a closing or selling option into the mix.
Seeking a Lifeline
When you’re stuck in a cash‑flow cul-de-sac, the obvious fix is to open a business loan (32%) or explore alternative financing swirls like:
- Cash‑flow finance – 24%
- Asset finance – 23%
- Invoice financing – 21%
- Trade finance – 19%
- Merchant cash advances – 15%
- Asset‑based lending – 15%
Andrew, the all‑time coffee‑quitter, finds that borrowing can keep his craft brewery from the brink, and he’s not alone.
What’s the Bottom Line?
A quote from Neil Rudge, Chief Banking Officer, Commercial at Shawbrook rings out above the noise:
“Keeping the lights on is all about cash flow – the lifeblood that pays the payroll and keeps the gears turning. In tough times, that lifeblood can feel like a leaking pipe, but UK businesses are resilient. With the right financial tools like asset‑based lending or invoice finance, they can patch those leaks and keep the ship sailing. The economy needs them, so let’s keep them afloat.”
So whether you’re pulling your socks up, commissioning creative ways to drum up sales, or simply tightening the budget, one thing’s clear: the UK’s business community is refusing to let financial hassles dictate their destiny.
