SMALL BUSINESSES USING LOANS TO MANAGE CASHFLOW


February 18th, 2020.


Small businesses are mostly taking out loans to manage their cashflow, rather than investing in their companies, according to research.


Almost 40 per cent of small businesses that borrowed money in the last quarter of 2019 used cash to keep going rather than invest in their firms, says the Federation of Small Businesses.

This compared with 23 per cent using finance to update equipment, 16 per cent to expand their business or just 2 per cent for hiring staff.

That small business is using external finance to cover outstanding invoices highlights the late payment crisis, says the FSB. The latest figures from Pay.UK show that the balance of outstanding late payments almost doubled to £23bn in 2019.


For the full story at smallbusiness.co.uk CLICK HERE.

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