More SMEs are changing their credit terms with their suppliers due to Covid-19, finds the latest results from the ACCA UK and The Corporate Finance Network (The CFN) SME Health Tracker.
The survey of accountants, representing nearly 19,000 SME clients, also shows that the current business environment of opening up is slowly easing the intense strain on anxious SMEs –
Small to medium sized businesses (SMEs) will struggle to trade if social distancing measures continue, finds the latest results from the ACCA UK and The Corporate Finance Network (The CFN) SME Health Tracker.
Accessing a survey pool of accountants representing nearly 9,000 SMEs across the UK, the findings show that on average 16% of SMEs said they think social distancing will make it impossible or unviable to reopen their business – equaling around 1,500 SMEs represented across this research pool.
As UK businesses cautiously return to trading, a review of the last eight weeks of the ACCA UK and Corporate Finance Network (CFN) SME Health Tracker reveals that the lockdown has had a marked impact on SMEs’ financial outlook.
Since early April, the Tracker has gauged SMEs’ financial health when the lockdown officially began on the 23 March 2020.
Thousands of small businesses say they are firefighting immediate concerns such as cashflow pressures and resuming operations safely ahead of lockdown lift
Small businesses are seeing their survival instincts kick-in amid fears over their ability to access cash required to operate post-lockdown.
The latest research from ACCA (the Association of Chartered Certified Accountants) and The Corporate Finance Network (CFN) highlights the growing number of SMEs seeking reassurance on how to manage their cashflow as the UK comes out of the Covid-19 lockdown.
Results announced during Mental Health Week reveal what accountants are hearing from their SME clients
Accountants are taking on the pressures of their SME clients about the impact of Covid-19, reveals the latest weekly ACCA UK and The Corporate Finance Network (The CFN) SME Health Tracker.
An expert panel of accountants representing over 16,000 SME clients in the UK have reported that 61% of firms that made enquiries for CBILS are still awaiting a response, with just 4% progressed to full application and 9% accepted.
Findings also reveal that 55% of clients have decided to defer their tax payments.
The Corporate Finance Network is calling on the Chancellor to consider a further overhaul of the CBILS scheme, or to supplement this with other grants to support the working capital needs of the country’s SMEs as he announces that the furlough scheme is to be gradually withdrawn.
Research from nineteen accountancy firms,
Please note: This news item has now been superseded by more detailed guidance for employers issued by Department for BEIS on Monday 11th May which can be found here
Following the Prime Minister’s address to the nation yesterday evening (Sun 10th May, transcript here) I received many messages asking my opinion on what that meant for xx business or yy business and I think that the following must be possible before a business is ready to re-open:
On 5th May, The Corporate Finance Network researched its accountancy members to ascertain their latest experiences of attempting to secure a Coronavirus Business Interruption Loan (CBILS) for their SME clients. Despite the much-heralded launch and apparent success of its younger sibling, the Bounce Back Loan on 4th May, CBILS still plays an important role in the rescue and recovery of more sizeable SMEs,
Kirsty McGregor, Chairman of the national accountancy group, The Corporate Finance Network, has identified that some businesses are missing out on extra grant support because their area hasn’t launched a top-up grant scheme, whereas other areas have provided that for their local businesses.
She explains: “As part of our work across the country,
