Concerns about business cashflow keep employers awake at night, according to a new survey.
The study, conducted by asset based lender Venture Structured Finance, found that almost 90% of financial directors working in companies with a turnover in excess of £100m admitted to having cashflow anxieties.
It seems size really does matter, as with smaller businesses turning over between £10m and £50m, less than half (43%) admitted to similar anxiety, suggesting that the bigger the cashflow, the bigger the problem.
Another main worry was getting funding solutions for company growth. More than a quarter of respondents commented that when trying to secure appropriate finance, the actual level of funding secured was less than initially agreed.
Equally, the time lag between issuing an invoice and receiving payment also causes businesses big problems. According to survey results, it can be enough to cripple a fragile business.
Chris Hawes, managing director of Venture Structured Finance said: “Asset based lending presents a viable alternative to traditional funding methods.
“The level of capital provided is based on the value of the business’ existing assets and executed business i.e. invoices awaiting payment, exposing the financier and the client to reduced levels of risk.”
The survey also found that worries about debt levels were a real issue – almost a quarter of companies in the North-east expressed a concern about debt, compared to the UK average of 6%.
© Crimson Business Ltd. 2007
