Average firm only has enough funds for 3 months

Average firm only has enough funds for 3 months

A survey of small firms in the UK by AXA has found that if faced with economic uncertainty or a crisis such as the illness of the proprietor, the average firm only has enough capital to keep going for three months while 10% of firms have less than a month’s funds in hand. According to the study, 44% of UK firms would close if faced with an unexpected crisis while 31% would keep going, but only with family help, and just 28% could afford to call in professional assistance. When seeking finance, 25% of respondents would ask family and friends for a loan first, 30% would use their personal credit card and only 22% would apply to a bank for funding.

There is more information about the survey at:

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