A Third of SMEs Face Funding Deadline to Stay Alive

SMEs in the UK Are on a Financial Cliff—Take a Look!

Just after a snappy survey by Novuna Business Cash Flow, it turns out that one‑third of UK small and medium‑sized enterprises are in dire need of financial help within the next year to keep the lights on and the coffee brewing.

When Money Stops Flowing…

Queens‑and‑queens of the business world are grappling with tough economics. Many are stuck looking at their own bank books and wondering what to do next. A whopping 27% of SMEs are pulling their own savings, borrowing from friends and family, or even home‑mortgaging to survive.

Seventeen per cent are still throwing cash back into the classic bank‑loan pot. But do we really want everyone to keep chasing the same old, old bank?

Here’s a quick rundown of the popular ways cash flows get injected:

Personal savings or cheeky “family loans”
Traditional secured bank loans
Stealthy invoice finance & receivables factoring

Except the last one tends to stay in the dark for most folks.

Late Payments—The Real Stupid‑Muffin Blow

Nearly 45% of SMEs are feeling the heat from late payments. That means that the cash they need to buy the next page of office supplies, pay a vendor or keep the lights on can slip through the cracks, leaving businesses stuck in a cash‑flow hammock that’s about to snap.

Survey Highlights How Few Take the “Fast‑Cash” Option

Only 2% of businesses have tried or even consider invoice finance or receivables factoring (they’re like instant cash that’s tied to invoices you already sent out). Why? The majority don’t know it’s even best practice to turn outstanding invoices into speedy money.

One‑third of SMEs say that the dodgy economy means they’re forced to look for external funding, and a sobering 34% admit that if they don’t get that help, they might have to shut their doors.

Experts Talk…

John Atkinson, the head honcho at Novuna Business Cash Flow, is on here telling everyone why it matters:

“Our recent survey highlighted how vital it is for businesses to have a variety of financing options to keep the ship sailing. Cash‑flow finance can be a lifesaver for firms that are dropping a beat on delayed payments. If SMEs are not aware of how to exploit these avenues, they’re basically sailing into a storm without a life‑jacket. We want to help companies thrive by smoothing out the riptide caused by unpaid invoices.”

Takeaway: Knowledge is the Key!

There’s an urgent need for a ramp-up in financial literacy among SMEs. If you’re running a business in this mess, it’s time to level up on the available funding routes and not just hold onto your parent’s life savings. Let’s get you the knowledge that turns those late payments into really fast cash that keeps your business alive and kicking.