Credit management company Darcey Quigley & Co. has emphasized the importance of cash flow for businesses and warned that external borrowing should not be the sole solution for growth.
The expansion of the Growth Guarantee Scheme, announced by the UK government, aims to support smaller firms and boost the economy. The scheme, unveiled in July by then-Chancellor Rachel Reeves, will offer financial support to around £9.4 billion worth of loans for small businesses by 2026/27, including £1.3 billion through the Growth Guarantee Scheme.
Darcey Quigley, CEO of Darcey Quigley & Co., stated that while government investment is crucial for many small and medium-sized enterprises (SMEs) to unlock new business opportunities, fair and timely payments from customers are crucial for long-term resilience.
The firm believes that the UK economy will benefit from the government's investment in SMEs, but warns that businesses must not solely rely on borrowing for growth.
SMEs currently face financial pressure due to unpaid invoices staying unpaid for longer than expected, leading more companies to seek assistance.
Darcey Quigley & Co. states that businesses should focus on improving their cash flow management, rather than solely relying on borrowing for growth. The UK government's £9.4bn investment in loans for SMEs by 2026/27, including £1.3bn through the Growth Guarantee Scheme, will provide a boost for the economy. Businesses must focus on timely and fair payment from customers, though, to achieve long-term resilience.
The firm asserts that while the extension of the Growth Guarantee Scheme is vital for the success of SMEs, businesses should not solely rely on borrowing for growth.
A recent survey by Darcey Quigley & Co. reveals that late payments from customers are causing financial strain for small and medium-sized enterprises (SMEs), prompting many to seek financial assistance.
In a response to government investment in SMEs, Darcey Quigley & Co. warns that businesses should prioritize cash flow management over borrowing, as the UK's £9.4 billion investment in loans for SMEs by 2026/27, including £1.3 billion through the Growth Guarantee Scheme, will contribute to the economy.
The company asserts that while the extension of the Growth Guarantee Scheme proves vital for SMEs, businesses should not solely rely on borrowing for growth.
The British Business Bank is expected to support £9.4bn in loans for small and medium-sized enterprises (SMEs) by 2026/27 via the Growth Guarantee Scheme, which will help these businesses reach their full potential.
Darcey Quigley & Co., a credit management company, notes that the government's investment in SMEs is crucial to supporting economic growth, but stresses that businesses must focus on cash flow management, not solely on borrowing, for long-term success.
