Cash Flow a Major Concern for Small Business Owners, New Poll Reveals
Among small business owners who worry about cash flow, three-quarters have missed a sales or business opportunity
Most small business owners are concerned about their cash flow. While it may seem like a common fear that’s just part of running a business, a new poll has uncovered a troubling side effect of this cash crunch: A majority of small business owners are missing out on sales revenue as a result.
Manta’s online poll found that 60% of small business owners have worried about a lack of consistent cash flow affecting their business. Of those owners, 75% said they have missed a sale or passed on a business opportunity because they didn’t have enough cash to support the growth.
Seasonal fluctuations in business are the top cause of cash shortages, with 48% of small business owners reporting seasonality as a concern. Slow-paying customers are a challenge for 29% of small business owners, and the need to invest in inventory or supplies before getting paid for a job is a concern for 15% of owners.
When looking for solutions to make up for shortfalls in cash, 41% of business owners have used personal loans and 11% have turned to personal credit cards. Invoice financing has been used by 24% of owners, while 18% have utilized short-term business loans. Just 9% of small business owners said they have used a business line of credit to bridge gaps in funding.
What can small business owners do to more effectively manage these challenges?