Credit, Collections & Insolvency News
Research by Nucleus Commercial Finance has found that most SMEs find the current cost-of-living crisis more of a burden than the pandemic lockdowns.
The research found that around two-thirds of those surveyed said the current cost-of-living crisis is proving more of a burden on their business than the pandemic lockdowns, with nearly 70 per cent of those made up of firms with a headcount of ten to 249. However, a third of all respondents believe the cost-of-living crisis is proving less of a burden than the lockdowns.
Overall, those polled said an average of £34,433 has been borrowed or raised to support the impact the current energy/inflationary crisis has had on their business’ funds, rising to an average of £49,613 among firms with ten to 249 staff.
Chirag Shah, Chief Executive and Founder of Nucleus Commercial Finance, said “The scale of the current economic challenge facing UK SMEs vastly exceeds that of the pandemic, according to those at the coalface. This is forcing businesses across the UK to reassess their investment and growth strategies, closely examine their overheads, and, more often than not, lean on additional finance just to keep the lights on.”
“In fact, the average amount that small and medium-sized businesses have had to borrow money as a result of the current energy and inflationary crisis is now a staggering £50,000. As the crisis continues, the situation is becoming increasingly perilous and UK SMEs need help, badly. There is no silver bullet. But, crucially, what cannot be allowed to happen is stagnation. Failing to properly support SMEs in the short term will wreak havoc on the long-term prospects for the UK as a whole.”
