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quarterly issue 2

Financial impact

Author: ICAEW Insights

Published: 19 Jul 2020

Data on cash flow, debt and borrowing reveal the complexity of the business challenges that lie ahead.

Cash flow

May was a key month for many, with practices and clients in trouble. The UK government has since extended the furlough scheme to provide more much-needed support.

Source: ICAEW survey findings from members working in SMEs and larger businesses conducted on 6 May and 19 May respectively.

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Business debt

Business debt will slow the economic recovery from the coronavirus unless the burden is made more manageable for SMEs, according to Institute of Directors’ data.

Source: a poll of 720 company directors by the IoD (published on 3 June 2020).

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As SMEs make up 99.9% of companies employing around 60% of the working population, it’s vital they get the right support. Although funds have been raised in financial markets, it’s much easier for large businesses to do this than SMEs.

Source: Bank of England figures for April 2020 released on 2 June 2020.

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