A number of small businesses believe they do not have enough cash reserves to survive another economic downturn, a study by Forbes Insights in association with ACCS (the Association of Chartered Certified Accountants), Certified General Accountants Association of Canada (CGA-Canada) andCNDCEC, the professional body for certified accountants in Italy, has found. While this study did not include the US, other surveys of US small businesses have indicated similar results.
The study was based on a survey of more than 1,750 small and medium sized enterprises (SMEs) in Canada, China, Italy, Singapore, South Africa, and the UK, with 30% of the sample micro businesses employing fewer than 10 people.
It shows that while most SMEs believed the worst of the recession had past, there was an unexpectedly high number of businesses – between 31% and 54% in each country, including those which have seen high growth and were less affected by the global downturn, who felt they did not have adequate cash reserves to survive another financial crisis
Invoice factoring can help provide a solution to cash flow problems. It is a fast and efficient means of obtaining cash when needed for growth or to cover operational costs. If there is another downturn small businesses have an affordable option.
Jan J. Cunningham
The Interface Financial Group
