Cash Flow Problems Continue To Increase Among Small Businesses, Survey Says
Written by Ken Gaebler
American Express OPEN survey finds cash flow problems to have experienced rapid growth in the past 6 months.
Small business news has been a mixed bag recently, as surveys have noted decreasing consumer and small business confidence, while government officials continue to espouse belief in the increasing availability of credit in the recovering sector.
To add to the confusion, American Express OPEN's Small Business Monitor recently noted that small businesses are moving from survival mode to growth yet continuing to face higher cash flow problems than ever before.
The survey found that 66 percent of owners harbor cash flow concerns, up from 53 percent six months ago. Twenty-three percent cited paying bills on time to be their top concern, followed by accounts receivable and having enough funding to pursue new clients (both 14 percent) and meeting payroll and accurately tracking cash flow (both 7 percent).
"With the desire to scale a business comes the willingness to make the tough financial decisions necessary to achieve that goal," said Susan Sobbott, president of American Express OPEN, in a statement. "Business owners have sacrificed cash flow comfort in order to make the switch from survival to growth mode."
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