Who cares about cash flow?

The majority of UK business owners do. According to the C2FO Working Capital Outlook Survey, 55 percent of businesses surveyed say that cash flow problems are their biggest obstacle to business growth.

Cash flow dictates the state of any business, good or bad. A healthy cash flow could allow businesses to grow, whereas a strained cash-flow can close doors rather than opportunities.

The utility company, Npower surveyed 1088 SMEs and found that almost one in five businesses are missing payday in order to stay afloat. The survey also found that 19 percent of SMEs rely on personal savings for financial support.

All these surveys relay the same message; that cash flow is believed to be a top priority for every founder, CEO and business owner. There is a direct correlation between businesses that succeed and those who can solve cash flow strains through good cash flow management or external finance. In a worst-case scenario even a profitable, growing business can be hurt (and even close) if a cash flow problem festers.

But simply panicking about your cash flow and finance can only get you so far we believe the key is to understand and simplify your cash flow. In turn, this could enable you to grow your business. Failing to understand your cash flow requirements means that your business may struggle to grow. At Growth Street, we aim to provide the support that allows you to be smarter about your business’ cash flow.

We believe the first part of this journey is understanding - rather than worrying about - your cash flow.

Written on in Business Insights Borrowing