09 Aug 2024
Over 110,000 small businesses in the UK are at risk of bankruptcy, according to research carried out by card payment processor Dojo.
According to the research, a large number of businesses don't have any cash reserves to support business operations. 2% of small and medium-sized enterprises (SMEs) don't have a cash reserve, and 30% of firms stated that high interest rates and inflation are amongst their biggest concerns for the rest of this year.
Additionally, amongst micro-businesses, 10% have no cash runway and 28% of firms have less than four months of cash left.
Just 2% of firms polled have over a year's worth of cash reserves, Dojo found.
Commenting on the matter, Mya Akbar, Business Accounts Expert spoke exclusively with Dojo, said: 'Cash reserves are vital for ensuring consistent operations, providing a buffer for unforeseen expenses, offering decision-making freedom, enhancing negotiation leverage, protecting against economic downturns, attracting investment and reducing financial stress.'
Source: https://dojo.tech/card-machine/how-uk-businesses-manage-finances-report-2024/