Cashflow Tips for Your Expanding SME

As an owner of a small business for over ten years, I’ve seen my fair share of cash flow crises. It’s the one thing that all small and medium (and large) business owners experience somewhere along the line, and dread.

Here are some tips we’ve compiled to help SME business owners plan ahead, and may help avoid the cash flow crunch:

ONE: Cash Flow Forecasting

The first thing to do is to predict where and when the business’s cash is coming in to cover what is going out, and make some profit on the side. Imagine if a client didn’t pay on time and plan for that. Set realistic earnings targets a year into the future, planning ahead week by week. List your SME’s income and expenditure on a spreadsheet, taking factors such as the peaks and troughs of trade, the overhead costs of running the office during the various seasons and staff leave, amongst other factors, into account.

TWO: Accounting Software

Cloud based tools allow SME’s to scale up and migrate their software as the company grows. Depending on your business profile, some of the most popular cloud-based tools out there are Xero, Freshbooks, Quickbooks and Sage, which provide solutions that are affordable and easy to use. They feature time-saving features such as automated entries, invoicing, bill payments, expense reports, financial reports and reconciliations – all key to keeping your cashflow fluid.

THREE: Strong Business Process

By definition, a business process is an activity or set of activities that will accomplish a specific organizational goal. Ensuring that your business has a strong business process, and is focussed on growth and  financial success makes the company more streamlined and efficient – which will translate directly to  your cashflow, as you will be getting the maximum out of your company to earn the best turnover for the least amount of input possible.

Ensure fiscal control by segregating duties in the financial department –  i.e. separate people working on the bank reconciliations and invoice billing.  If the SME is small, the business owner should always check the bank reconciliation, making sure they keep up to date with company finances. Enhance the business process by, for example, integrating CRM programmes that facilitate and streamline one’s marketing and client relations strategy, or by using cloud based invoicing which link your marketing and sales teams.

FOUR: Optimal Payment Terms

Always remember that your clients have different business priorities to your company’s. The longer they can delay paying your company, the better for their business. Negotiate terms with your clients that suit both sides – and bargain hard. On long-term projects, explore progress payments, never accept back-to-back payments (you get paid when the client gets paid) and make sure you are getting the most agreeable terms possible from your suppliers. Negotiate the best deal woith suppliers, but keep them on your side by settling their bills within their terms too. Business is all about relationships, and building up a loyal supply base is one of the secrets to success.

Offering clients incentive to pay early is a good way to ensure bills are settled timeously – small discounts or free delivery for early payment goes a long way to fostering good client relations, and getting the payments in quicker.

Make sure that you are using the most cost effective manner of payment – bank charges on card transactions can be steep, online payments may take days to clear – ultimately you need something to investigate the most effective payment method for your business needs.  You can speak to your bank relating to the most efficient services provided and the costs per transaction.

coffee-cup-mug-deskFIVE: Funding Your SME

When your business needs funding, the first place to go is the high street banks -still the largest funding source for SME’s. There are also a number of challenger banks out there, offering great deals. Should you need alternative funding sources, then consider  financing though companies like TradeRiver or FundingCircle (who provide a thirty second eligibility check, with no impact on your credit rating, and has a £60million facility via the government-back British Business Bank) or BoostCapital (online application and an answer within 24 hours, with access to the funds within two days).

SIX: Deliver the Goods

Make sure the customer has no excuses not to pay. Deliver a good quality product, on time and within the brief. Realise that without customers you don’t have a reason to exist. Customer complaints should be taken seriously as these will alert you to problems that could indicate a serious leak in your cash flow. Disputes hold up payments, which leads to cash flow problems.

Listen to your clients – if they have suggestions to improve your User Journey, or your product, implement them. You should see the difference in your bottom line. Ask your happy customers to write company review on TrustPilot or Which.co.uk or s similar website. Good reviews are what drive sales. Sales translate into cash. Regular cash coming in helps your cash flow.

SEVEN: Make Your Cash Work

SME business savings are often a blindspot when it comes to the banks, and now there are an increasing number of alternative savings accounts out there that are tailored towards the SME market. If you have your business’s cash savings stored in a savings account earning next to nothing, we at StongJones suggest you shop around for a better deal. There are many banks such as Investec, ICIC, SBI as well as the challenger banks which are offering competitive rates. There is a growing awareness amongst financial institutions of the need to cater for SME’s, recognising that they are the future of business in the UK.

Finally…

Being an SME owner comes with many challenges. Well known businessman and entrepreneur Sir David Tang once said that the three most dreaded words in the English language were “Negative Cash Flow “. However, if one can get the basics right, and gets a good operating system in place, then your business has a far better chance of surviving the first few crucial years, and will be well prepared for future expansion.

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

Save

Andy Murray: Tech Startup Champion

Winning gold for the second time at the Rio Olympics has cemented the Team Great Britain hero’s place in the annuls of sporting icons. The current reigning men’s senior singles Wimbledon champion, has a string of tennis titles to his name, 39 to be precise. He has recently added a title of another kind to his name: that of Advisor in the business of tech startups.

Even if his flag-bearing skills are in question, (and please forgive me, I couldn’t resist including this clip) his business skills certainly aren’t.

36dadc6100000578-3721936-image-a-10_1470270588657

Being a wily Scotsman, Andy Murray (@Andy_Murray) is putting his talent for spotting opportunity to work – only this time it’s off the court – by investing in tech.

“Giving recognition and support to British entrepreneurs is really important to me, especially those who are the driving force behind growth-focused businesses,” Murray said in a statement.

“Every one of these entrepreneurs is passionate and dedicated to succeeding and I’m excited to have invested in their future growth.”

His talent for investing in tech startups has cemented a long-term relationship with Seedrs, where he is an advises on areas of strategic interest, as well as being an active investor himself. The Seedrs platform allows people to invest upwards of £10,000 into companies that they like the look of in exchange for equity.

Murray has invested in fifteen startups to date – with focuses as wide ranging as a dog-tracking GPS device (Dog Tracker Nano), to Beeline – a GPS navigating device and app for cyclists to beauty – blow LTD – a London-based beauty on demand service.

“Andy is a great example of an investor who understands early stage investment and the importance of building a diverse investment portfolio aligned with a wider investment strategy. Seedrs was named the most active investor in private companies in the UK last month, and our continued growth and leading position in the market are testament to our reputation and the support from people like Andy,” said Jeff Lynn, CEO and Co-founder of Seedrs.

If his tennis career is anything to go by, this man is bound to succeed.

andyh-business-life-andy-murray-credit-clive-brunskill-e0923bf1-a1f2-48c1-9c1d-5c50a7c4f260-0-450x521

http://businesslife.ba.com/Media/images

He’s been in the game since the tender age of 3, when his mother, Judy, would take him to their local tennis courts in Glasgow. He played in his first competitive tournament at age five and by the time he was eight he was competing with adults in the Central District Tennis League.

The world-ranked number two has competitiveness in his genes – his brother, Jamie is a two-time Grand Slam winner and a Davis Cup champion, currently the world No. 4 doubles player and a former doubles world No. 1. His mum, Judith “Judy” Murray (née Erskine) is a Scottish tennis champ herself, having won 64 titles in Scotland during her junior and senior career.

The young Andy Murray could have easily followed in the footsteps of his maternal grandfather, Roy Erskine, who played professional football for the Hibernian Football Club in the 1950’s – deciding to focus on his tennis career in, despite having been invited to train with Rangers Football Club at their School of Excellence.

In 2012, by beating Novak Djokovic at the US Open, incredible tenacity and grit resulted in Murray being the first British player since 1977 and the first British man since 1936, to win a Grand Slam singles tournament. In 2013, Murray was the first British player to win the Wimbledon Championships, and entrenched his influence over SW19 winning again in 2016, becoming the first British man to win multiple Wimbledon singles titles since 1935.

On or off the court, this man is a true champion who is bound to conquer whatever he turns his attention to, because he has a fiercely competitive will and the work ethic to back this up.

Feature image: http://cdn.crowdfundinsider.com/wp-content/uploads/2015/06/Andy-Murray.png

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

 

Save

Inspiring Women in Tech Series #3: Eileen Burbidge, MBE

Eileen Burbidge (@eileentso) has a knack for being in the right place at the right time. “I saw really smart people get nothing but others who hit the jackpot — even though they weren’t that hard-working but because they had timed it right. One of my guiding principles now is that the best you can do is try to increase your exposure to luck and recognise lucky options.”

One can be presented with opportunities, but securing them is another talent altogether. Describing herself as an “accidental venture capitalist”, Ms Burbidge credits her progress with being naturally curious and adventurous, her workaholic tendencies, good communication skills and quick thinking.

Her Chinese parents (her father was an engineer and her mother worked in finance) instilled in her a tough work ethic from an early age. In an article by Ben Rooney, Eileen says that she couldn’t see what the big fuss about Tiger Moms was. She laughs now, but said that she thought that was how everyone was raised. “My parents had this view that they had to work much harder than non-immigrants. They impressed the same view upon us as kids. ‘You are not going to get the breaks when anyone looks at you,’ they would say, ‘so you have to prove that you belong there.’

In the US, for Burbidge, the fact that she was a woman was secondary to the fact that she was ethnically different. “I have had more to prove, and more to overcome, looking Chinese, than I have for being female. I grew up thinking that if I were white, I could do whatever I wanted. I thought white girls had it easy. It never even occurred to me that white girls would say they were disadvantaged.

As one can imagine, Burbidge is passionate about being a great example of how women can thrive in the tech world. She says that women should use the fact that they are a minority to their advantage  – “being conspicuous can be an opportunity to stand out“, and revels in memories about when she has been in meetings as a token female and has ended up flooring the men around the table with her intelligent contributions. She has said many times that being a woman has not been a hinderance to her in this field, and that in fact it is an industry where you can create whoever you want to be behind the computer screen.

Eileen-Burbidge

Burbidge studied computer science at the University of Illinois, “before it was trendy”, and started her career in San Francisco working for a telecoms company. This was the start of the tech boom in Silicon Valley and she rode the tech boom wave, becoming Market Development Manager at Apple Computer. Between 1996 and 2003, Burbidge lived the life, likening the atmosphere in Silicon Valley to Wall Street in the 70’s. She moved across to London in 2004, thinking that gaining international experience would be a good idea, expecting to return to the US after 2 years. Lucky for London, she stayed. “It’s so much more fulfilling to work in tech in the UK because it is earlier in its life cycle and you can shape it more.

Her career path took her to iconic tech companies which were relatively new – Skype, Yahoo and Ambient Sound Investments. She went on to co-found White Bear Yard with Stefan Glaenzer and Robert Dighero, who became her partners at Passion Capital, a leading early-stage technology and internet VC firm, which was launched in 2011.

Apart from working at Passion Captial, Eileen acts as board director for DueDil, Digital Shadows, wireWAX, Lulu and other portfolio companies. When assessing potential startups to invest in, her criteria for possible  are rather interesting: be friendly to the receptionist. Relationships are important. People are your company. How you treat people is vital. Burbidge looks for dedicated individuals who are willing to put in the hours and the passion required to make a success of their ideas.

The London tech scene has exploded, with the digital economy growing a third faster than the UK economy as a whole. Earlier this year, the Tech City cluster of businesses reported that 1.56 million people were employed in digital companies in the UK, with 328,000 of those in London.Digital is already 10 per cent of UK GDP and it is forecast to be 15 per cent in 2017… (It’s) the sector with the greatest job creation compared to the national average and we have 10 times as much venture financing coming into London tech as we had five years ago…. it’s fantastic that the Government has recognised it — economic growth is consistent with its mantra as a government but also in terms of job creation.” 

Listen to Eileen Burbidge being interviewed by TechCrunch here:

Despite the Brexit vote, Burbidge remains positive. The UK, and London “remains the biggest tech centre in Europe and continues to attract the best talent and companies from all over the world. These are attractive factors for any investor and there will be plenty of opportunities for investment in the coming months and years ahead,” she responded to a recent report by the investment database Pitchbook for London & Partners, the promotional body for the London Mayor’s office.

With the passionate-about-tech Eileen Burbidge here as Chair of TechCity UK, as HM Treasury’s Special Envoy for FinTech and Tech Ambassador for the Mayor of London.our official Tech Ambassador – are we surprised the message for UK’s tech scene’s future is a bright one?

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

 Featured photograph by Techworld.com

 

 

Save

Inspiring Women in Tech Series #2: Gemma Godfrey

Gemma Godfrey is a woman who has it all. She’s got fans across the world who hang on her every word across various media platforms for the latest investment advice; great smile, great hair (which has it’s own Twitter account); a husband who is a film producer and a beautiful son, who is a regular star feature in her Instagram posts. Now she also has a FinTech startup called Moo.la, which was (no surprise here) recently named as one of the top ten FinTech companies to watch this year.

Godfrey started out at Goldman Sachs as an intern, worked her way up through the corporate world, working for GAM as a Fund Manager, as Chairman of the Investment Committee at Credo Capital and Head of Investment Strategy for Brooks Macdonald – all the while contributing on Sky Business News, CNBC, the BBC and writing for Huffington Post, The Telegraph and The Times and various other publications. She was also Founder and Editor for The Investment Insight, giving online insight into the how’s, who’s, when’s and why’s of investing for five years. She is Board Advisor to Templars and CLU School of Management.

Godfrey was named among the “savviest” on Wall Street by the Wall Street Journal, the City of London’s “Commentator of the Year”, and most popular Business Influencer on social media in the New York Shorty Awards in 2014.

You can see why she’s popular – just take the topic of her December 2013 TEDxWallStreet talk, entitled How to Kiss. “Today I’m going to teach you to kiss. At work. On TV. In life or death situations. I’m going to show you how. And then when we go our separate ways you’re going to kiss with other people more than you’ve ever done before!”

It was a business talk, of course. Kiss stood for Kiss was Keep It Simple Stupid, by the way.

hqdefault-1

Gemma Godfrey speaking at TEDxWallStreet, 13 December, 2013: “How To Kiss”

Watch here : Gemma Godfrey – TEDxWallStreet, 13 Dec 2013

Her advice for tomorrow’s leaders? In an article by Marisa Nadolny in her article, Godfrey’s Law of Success: Follow your Passion, the answer is,“Follow your passion, and success will come more naturally… People try to funnel themselves into what they think is an appropriate place,” she explains, “but it’s better to follow what they’re good at. A lot of people will force themselves to do something they think they should do, with little success.”

One of last week’s StrongJones blogs Inspiring Women in Tech Series #1: Lady Judge buys into Tech Startup featured British and American boardroom lioness, Lady Barbara Judge, CBE, who said that she regretted not having studied maths or science at University, as she felt that she had been playing catchup her whole life. Lucky for Godfrey, her passion was science. “Having a scientific background, you’re used to taking the complicated and complex and presenting it in an accessible way,” says Godfrey. Possibly one of her most valuable skills throughout her career.

Godfrey says it was a “pure love of the subject” that fuelled her interest in physics at a young age. She credits her father with cultivating her scientific curiosity – she holds a degree in Quantum Physics from the University of Leeds.

Selected by the BBC as one of the world’s Top 100 Women, the unstoppable Godfrey was profiled by the Sunday Times on the ascent of women in the boardroom – something that is under the spotlight right now, in the British banking and finance industries.

Jayne-Anne Gadhia, CEO of Virgin Money, was asked by the then Economic Secretary to the Treasury, Harriett Baldwin, to lead a Review focussing on the representation of women in senior managerial roles in the Financial Services industry. When the Review was released in March this year, it showed that in the UK, “New Financial’s sample of 200 firms active in UK Financial Services showed an average of 23% female representation on Boards, but only 14% on Executive Committees. Only 50% of women, compared to 70% of men believe they have an equal opportunity to advance regardless of their personal characteristics or circumstances.” Pretty appalling stuff.

Courageous women like Gemma Godfrey are pure gold. We couldn’t have a more inspiring person – who literally seems to fizz with eneregy and passion – to shakeup things, and spur on the aspiring FinTech women out there.

“The big thing that motivates me, is this feeling that you want to have an impact, you want to make a difference,” says Gemma, “I’ve always felt like that, wanting to work in smaller teams and be able to actually shape something. … I’ve realised I’ve spent the last few years waiting for somebody else to do this, and I thought I would join them! But there aren’t really that many people out there who’re doing this. This is a great opportunity to do it myself.” @gcgodfrey

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

 

 

 

Save

CMA Pave the Way for an “Open Banking Revolution”

This is a real banking revolution: the CMA (Competitions and Markets Authority) announced some stringent rules for banks in the UK to comply with by 2018. This throws the gates wide open to competitors, and will have banks scrambling to attract customers.

As the banking industry has been slow to respond with innovations, the CMA has made it clear that it expects to utilise its own enforcement powers, in addition to expecting reform from the government to push through change. While some commentators believe the change is not far enough, I am of the view that steps in the direction of major change start slowly and momentum builds quickly.

These changes include:

–       Open Banking by 2018 – by which the CMA means to accelerate mobile banking in the UK retail banking sector.  SME’s and individuals will be free to share their banking data securely with other banks and third parties, enabling them to manage their accounts with a range of providers through a single App – thus having more control over their money and also being able to shop around for better deals. Banking on the move, having your bank in your phone is the way of the future.

–       Accurate, unbiased information about their services and truthful information about products and quality of service – from their branches to their websites. there is much agreement that with a significant range of fintech investment both within the industry itself, as well as new players, banking as it currently stands will undergo drastic change.

–       Making event- based communication compulsory – for example if a branch closes or there is an increase of charges, they have to send their customers notice of these happenings.  THIS was raised to provide trigger points for review of banking products – like the insurance sector which has an annual policy renewal as a trigger to prompt considerations of cost, cover, benefits and performance of an insurerer.

The CMA has also made it clear that it is to be made easier for customers to search for banks offering more competitive rates and to enable easier account switching.

Apparently only 3% of individuals and 4% of businesses ever change their banks in a year, despite the huge savings this could provide.

A range of other measures has also been announced – for example, those of you who may have been surprised to find that you are in an unarranged overdraft, without ever having arranged one, the CMA has introduced specific measures including that the bank needs to alert you before this happens, and offer you a grace period. It was found that banks in the UK make an unbelievable £ 1.2billion a year from unarranged overdrafts.

Businessman-in-Istanbul-000052231446_LargeBy 2018, SME’s should be in a much better banking position after the Competition Marketing Authority’s findings

Businesses and individuals win all round with the banks having to provide accurate information on banking services and charges for small business.  One of the key assessments is that small business had lacked the tools needed to assess fair credit and availability and service quality.

In order to progress further, the CMA will be supporting Nesta.  This requires banks to provide financial backing and technical support for this innovation-supporting charity that aims to partner and work with organisations who need information and expertise on the practice and theory of innovation.

This initial level of game-changing recommendations will make the United Kingdom the most attractive banking hub for customers as well as provide another example of leading the way in innovation, particularly relating to small and medium businesses.

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

Save

Savings Hit as Interest Rates Halve

There have been significant challenges to businesses over the past few years – austerity, changes in regulation , minimum wage and more recently the EU referendum – all within a climate of global uncertainties as the major world economies are in recovery. Most of these factors have some impact on almost all businesses within whom we interact.

The Bank of England has now cut rates from 0.50% to 0.25% – a move that has previously been expected, and priced accordingly by the markets since the results of the Brexit were announced.  Head of BoE, Mark Carney, has also ruled out negative interest rates, and has provided business savers with some certainty going forward.

Business Savings have been worst affected, with interest rates for U.K. Savings accounts from High Street banks being in the low and in some cases, nil percentages.  Fortunately there are still many banks offering reasonable returns in the current climate and we encourage SMEs to review availability, particularly bearing in mind government protection up to £75,000 per banking institution. Currently, the highest Easy Access business rates are 1.10% to 1.35% for business interest rates.

pexels-photo-29781

Shop Around for the Best Rates Available

Last week, the Royal Bank of Scotland wrote to 1.3 business owners, saying that it may be forced to charge on credit balances, should the Bank of England take on negative base interest rates – mentioning they may charge businesses for holding deposits. This announcement was currently limited to only two High Street banks, concerned with their own margin pressures.      

There is still ample opportunity for business to work the unutilised asset – cash.   At the same time as the above announcement, there are a large range of banks offering relatively significant returns from overnight to 1 week 1 month and 1 year plus terms, so it is worth shopping around for the best returns.    

“For now, it’s unlikely a cut in the base rate to 0.25 per cent will result in charges. But this is certainly something to be wary of further down the line if you are a small business owner with cash in the bank. It may be a good reason to shop around for a different bank, one that commits not to impose charges,“ writes Ben Chu, Economics Editor at the Independent.

We at Strongjones urge all businesses spend time reviewing market alternatives for their cash surplus. This would be as simple as a marketplace review – taking a few minutes, allowing you to continue your primary banking relationship without any change. This combined with straightforward cashflow management allows the business to extract additional income for minimal effort.

We provide SMEs solution to manage cash and maximize returns and are happy to discuss our solutions further and we aim to provide solutions that every business should be seeing from their banks in some form. Our startup is presently taking on Beta Group customers – contact us to learn more.  

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

Save

And Facebook Just Keeps Growing…

Suddenly there’s a lot of interest in our fintech startup Facebook page – StrongJonesUK.

Have a look here:   fb-art.jpg

What is interesting is that I was under the impression that Facebook was lagging behind other social media platform. It had been “cool” a few years back, but that it had peaked and was now on a plateau, even a slow downward turn.  With Twitter and Linkedin, Instagram, YouTube and all the other platforms heavily in use, it seemed like an “older person’s” (i.e. my friends and I in our early forties) social media network.

Well – Go “older person’s network”!

According to the BBC Business article this morning, Facebook profits are up 186%! They earned $ 2bn (£1.5bn) in the period from April to June 2016, up significantly from the same period last year, which was $ 719m in 2015.

By comparison, Twitter’s MAU increased by just 3% in that period.

The anticipated revenue was $ 5.8bn, but Facebook brought in $ 6.4bn. Mark Zuckerberg was pretty chuffed, as you can imagine.

“Our community and business had another good quarter,” he said, “We’re particularly pleased with our progress in video as we move towards the world where video is at the heart of all our services.”

A year ago I moved to London and left my family, my friends, my colleagues behind. During this week, I was commenting to a friend who was staying in a remote town for business, (over Facebook, as it turns out!), how this particular social medium has been a huge factor in getting over the sense of isolation. I was and am able to tune in to people no matter where they are in the world, and still be a part of their lives. Social Media (and Facebook can take a lot of the credit) has changed the world.

And being social media savvy and banking tech savvy is not an option anymore. You are simply unable to compete if you don’t have access to these platforms.

Banks have their work cut out in trying to adapt and invent products and approaches to deal with the ever-changing demands of their clients. Just the other day, the StrongJones team were thrilled to be invited to compete in the annual BNP Hackathon, proving we are amongst the brainiest 96 startups in the fintech space! The event engrossed teams in eight cities across the world over the weekend of the 17th – 19th June.

And Tech-savvy banking is our game! Our StrongJones financial management for individuals, SMEs and retail is in the Beta stage of it’s growth. At StrongJones we offer up-to-date technology and precise, current banking product information to our customers. It’s really worth test-driving our personalised Savings Marketplace and Digital Dashboard, which, by informing you of the best rates available on the market, help you maximise your cash savings. Drop me a mail if you are interested in joining our Beta Group at heather@strongjones.co.uk

So – I’m not surprised that Facebook has done so well recently – it is still accessible, user-friendly and effective. It has adapted with the times, in fact, has lead the rest in many areas. All I can say is that there may be other platforms out there, but Facebook is still a very user-friendly and Truly Social network for me.

Have a look at StrongJones www.strongjones.co.uk

Go on – Follow and “Like” StrongJones wherever you can find us!

These views are strictly my own.

Heather Greig

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

Companies using personal funds to meet business goals

Cash flow is identified as the biggest worry for SMEs.    
Only one fifth of small businesses have used financial support, including business loans, invoice finance, peer-to-peer lending and finance leasing, in the last 12 months, research finds.

Instead businesses turn to their own bank accounts (30 per cent), overdraft facilities (16 per cent) and their own families (7 per cent) to access the cash needed, according to a study by Hitachi Capital.

Small and medium-sized enterprises (SMEs) are struggling to expand and grow their teams, with six in ten SMEs (60 per cent) expecting to stay at their current size or scale down and only 6 per cent expecting to experience significant growth, the study of some 1,000 small business owners reveals.

Cash flow is identified as the biggest worry for SMEs, with almost one third (30 per cent) of small business owners saying they are being kept awake at night by this issue. Worries are caused by a range of factors including late payments from customers and unexpected costs and charges.

Insight from Hitachi Capital shows that April, July and October are the times when small business owners are most in need of help and when cash reserves are low, making it even more important to plan ahead.

April, the beginning of a new tax year, forces SMEs to get up to speed with a host of new legislation, including the new National Living Wage and several new immigration laws.

In July, holiday season and a reduced workforce takes its toll on smaller companies, while in October businesses are under pressure to meet the retail demand of Black Friday and the festive period.

Financial solutions, such as invoice finance and business loans, can help small businesses to deliver efficient and successful operations across the year.

Gavin Wraith-Carter, managing director at Hitachi Capital Business Finance says, ‘The UK’s SMEs account for 99 per cent of our entire economy, so it’s critical that we enable them to efficiently manage their business and support them in their growth ambitions.

‘Peaks and troughs across the year are inevitable for any small business and accessing financial solutions can help manage these periods as well as helping to overcome any unexpected hurdles.’

http://www.smallbusiness.co.uk/news/management/2515311/companies-using-personal-funds-to-meet-business-goals.thtml

Akoni helps businesses make the most of their cash. Follow us on Twitter @akonihub or connect with us here.

 

 

How SMEs are using FinTech and cloud tools for Growth and Profitability

How SMEs are using FinTech and cloud tools for Growth and Profitability

There is much talk about the disruption of FinTech innovation, and not much in terms of understanding the business impact. In particular, small and medium-size enterprises, who can benefit in terms of financial leverage, use various online tools to increase productivity, streamline processes, improve reporting and the business balance sheet. In the age of digital innovation, FinTech is providing solutions that can benefit small enterprises as much as it does the retail market. We aim to present a few pragmatic options for you to explore.