Cashflow, the net amount of money coming into and out of a business, is an essential sign in establishing the health of many organisations.
This is particularly true of small and medium sized enterprises (SMEs), which typically lack the cash reserves of larger companies. Instead, they rely on predictable monthly turnover to ensure operations run smoothly. By extension, cashflow issues can be extremely serious for smaller businesses that have little buffer to account for a sudden drop in incoming cash, or indeed a sudden rise in expenditure.
However, the coronavirus pandemic has had – and is continuing to have – a damaging effect on the UK’s private sector, with businesses of all sizes and sectors facing significant challenges. And cashflow issues have been chief among these....