Cash flow biggest concern for small firms
Cash flow problems are a major concern for over a third of small businesses, according to new research.
The survey by Barclays Business Insurance found that threats such as terrorism or global warming pale into insignificance when compared to the loss of income from late and non-paying customers.
Small firms were far more worried about issues such as equipment breaking down (28%) or being burgled (26%), according to the report. Only 5% said they were worried about terrorism having a harmful effect on their business.
Over half of the small businesses surveyed said that their business had previously suffered from customers not paying. Nearly a third of small firms had also suffered as a result of business vehicles breaking down. “Life is full of twists and turns and running a business is no different,” said Mark Till, marketing director for Barclays Business Insurance.
Till said that problems would always arise that businesses cannot be fully prepared for, making it vital that small firms are adequately insured.
More than one in seven business owners had been forced to close their firm for an average of 13 weeks due to issues such as burglary or weather damage, according to Till.
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