New data from the SME (Small to Medium Enterprises) Growth Index has revealed that one in five SMEs are experiencing cash flow problems due to business loans being rejected.
“Australian small businesses are in the midst of a cash flow crisis and the SME Growth Index indicates the situation is getting worse,” said The Australian Small Business and Family Enterprise Ombudsman, Kate Carnell.
The research has shown that the percentage of SMEs reporting significantly worse cash flow, has doubled since March 2018, with 7.3 per cent saying it’s significantly worse and 12.3 per cent say it’s worse than the previous year.
“Small businesses are telling us time and time again that a lack of access to funding is their biggest barrier to growth,” said Ms Carnell.
“Interestingly, the Index found just one in 10 SMEs said they had no cash flow concerns in the past year.
“More than a quarter of small businesses (27.8 per cent) said they had difficulty meeting tax payments on time,” she continued.
Ms Carnell established that she is in partnership with Scottish Pacific and has created the Business Funding Guide, “… which not only offers comprehensive, up-to-date information about what’s out there in terms of finance options, but also helps small businesses get ‘finance fit’ to give them the best chance at securing the funding they need”.
