According to a new report out this week from Dun & Bradstreet and Pepperdine University, more small and medium-size businesses in the U.S. needed to access working capital in the last three months than during any other period in the last five years. A whopping two-thirds of the businesses surveyed sought financing this last quarter because they needed more working capital – a 22% spike from the same time just a year ago.
It won’t shock you to hear the biggest reason cited for the strain on these businesses’ resources: getting paid on time. Particularly vulnerable are businesses with less than $5 million in revenue; 22% of those businesses have seen a slowdown in their accounts receivables in 2017.
Sounds familiar. It’s important that those businesses use solutions like www.vitalcashflow.com designed for working capital, instead of signing away their equity, using collateral, or needing good credit.