Unravel the hidden crisis of Cash flow with Populous World

Statistical data shows that Brits are establishing more and more enterprises each year. The UK is the world’s fifth-largest economy with around 5.7 million small or medium-size businesses registered, contributing an annual turnover of £1.8 trillion. However, the risk of cash flow mismanagement on these million small firms hangs like a sword.

According to the European Union standards the SME’s are defined as ventures with 250 and fewer employees and these companies either at the beginning of their journey or in the middle of it, are often requires funding management to make sure it doesn’t run out of cash flow mismanagement.

A recent survey conducted by WePay SMB & Money Survey concluded (41%) of small business owners had experienced cash flow challenges. The other 59% agreed on the highly consequential impact of financial inability on their businesses.

Not disagreeing to a fat truth, SME’s are crucial to the UK’s economy and their contribution is increasing every year.

When it comes to cash flow issues resulting from payment problems, small business owners face different situations which are not in their control and at this time a cash flow management is necessary to stay in the long run.

Poor payment practices: a hidden crisis

Poor payments can have a massive impact on a business, and one late payment can lead to cash flow issues.

Research by Dun & Bradstreet on late payments identified that SMEs are inherently more vulnerable to late payments and around 48% were at the risk of shutting down due to late payments.

Overdue invoices can dramatically impact the cash flow of SMEs, as many of these companies lack the deep financial reserves or access to capital, which can bridge the gap in payments for large businesses. Ignoring this issue only perpetuates it. 

Although, invoice financing is an effective solution provided by companies such as Populous World for businesses to escape this financial crisis.

Populous World endeavours to help business owners leap onto a stepping stone to grow and nurture their existing company. When a customer defaults on a payment or takes too long to pay, it can create a financial dent in your cash flow, making it impossible for you to make ends meet and keep your business afloat.

SMEs that list invoices with Populous World are taken through a full tailor-made service, where the on-boarding process is carried out swiftly, and on-hand support is offered throughout the duration of the short-term funding required and is flexible to the terms that suit your business

Lou Chan, Head of Marketing, says, “we at Populous World are customer-obsessed, and we want to constantly improve and create a platform that business owners love and trust. Ensuring customer satisfaction is our priority”.

Navdeep Yadav
Twitter: @navdeepyadav321