Satago comment – Why the UK’s small businesses are struggling to grow
Original article – The Telegraph
Whilst SMEs describe themselves as fast and agile, generally obtaining the finance they require can be a major issue. Even with a healthy order book many SMEs suffer from the strain of insufficient cashflow and the inability to unlock working capital tied up in their debtor book to invest in growth.
A study by The British Business Bank showed that 27% of smaller firms don’t get the finance they require from traditional sources, so where do they go after that? Many, unfortunately, scale back their growth plans but this doesn’t have to be the case. Sinead McHale, CEO at Satago commented, “We’ve seen that, when provided with flexible finance options, SMEs are able to grow and thrive rather than buckling under the pressures of managing limited cashflow”.
SMEs account for 99.9pc of all private sector businesses and are the backbone of the British economy. These small businesses are also the major drivers in innovation and the reduction of unemployment numbers. With skill shortages being another major barrier to growth for SMEs many simply can’t afford to hire specialists and so go for an all-rounder approach resulting in lack of financial expertise, so what can be done?
· Better awareness – to help SMEs become more aware of the financing options available to them and how to apply
· Cloud Adoption – the average SME spends 70 hours a week on finance and legal tasks, which could be dramatically reduced through the use of cloud accounting software, so employees can concentrate on growth
· Better support – often SMEs receive a ‘lite’ version of services when compared to large corporates; better support or specific SME call lines would help them save time and solve problems
· Stopping late payments and extended payment terms – large corporates abusing their position in the market with late invoice payments is a direct threat to the survival of SMEs
Satago is a flexible invoice finance, CRM and credit control platform that has been designed to help businesses get paid on time - every time. By providing invoice finance Satago bridges your cash flow gaps allowing you to focus on growing your business. We are an accredited partner with market leaders in the world of accountancy and cloud accounting software.