Cash flow is consistently ranked as one of the biggest concerns for SMEs alongside rising costs and access to talent. In fact, a 2025 Intuit QuickBooks survey found that 47% of UK SMEs admit to having cash flow problems, with 64% expressing concerns about how this will affect operations.

Without appropriate ‘liquid’ cash, even a profitable business will struggle to manage daily operations. And while big firms have credit lines and buffers, SMEs don't have that luxury, meaning cash flow pressures are more acutely felt. One major factor that affects a business’s cash flow is owning assets outright.

The moment money is spent on equipment, that cash is no longer available to invest in other areas. Instead, it's tied up in an asset that will almost certainly depreciate the more it's used, meaning you’ll likely lose money if you decide to resell the asset. All this leads to businesses missing out on growth opportunities or generating demand because they lack the working capital to invest.

Here, we’ll explore why SMEs face such pressures and how finance can help or, when done wrong, harm. We’ll also examine some solutions which actually work.

We know the concerns businesses have about cash flow, which is why we offer flexible solutions that work to help, not hinder, your business. Speak to our specialists today.

Why SMEs face cash flow issues

UK SMEs are often owed thousands of pounds in unpaid invoices every year. This constant chasing for revenue has created a persistent problem that has stifled growth and stability. When businesses don’t get paid, they face a squeeze. Unfortunately, delayed payments don’t stop the need for wages, bills, and suppliers, who themselves are waiting on income, to be paid.

Couple that with rising overheads, and SMEs can face liquidity issues even when trading is strong. SMEs which are affected by seasonality feel cash flow issues more acutely, too. Summer months, for instance, may create strong cash flow for businesses, but during the winter, they may find themselves drawing on reserves to pay for ongoing costs.

Cash flow can also be affected by something traditionally seen as a positive - growth. A growing business can trigger problems for itself because upfront investment is needed (or so business owners think) in new equipment  and talent, which don’t return on investment for a very long time. Whatever the issue related to cash flow is, it all has one common theme - timing.

Money flowing out doesn’t align neatly with money flowing in, and without buffers in place or smarter investment choices being made, SMEs get trapped in a cycle of firefighting cash shortages.

How the wrong type of finance can make things worth

To help fight this particular fire, SMEs often turn to finance. And while asset finance, for instance, comes with a host of benefits, not all finance is created equally. Traditional loans, for example, often come with rigid repayment schedules and lengthy approval processes. And even when the funds are with a business, they’ve waited for so long that the problems have just been made worse.

Another typical finance solution, credit cards and overdrafts, simply pile on high interest and risk, creating long-term debt burdens that just add to the cash flow issues. Poorly matched finance, then, only worsens liquidity issues, setting up repayments that may fall due when revenue is at its lowest. However, appropriate asset finance solutions can align with business rhythms and can offer support instead of additional strain.

The key to finding the right finance solution is to work with a partner who understands SME cycles and the industry in which they operate. The correct financial arrangement can keep working capital in your business, helping to mitigate late payment issues. It can also provide speed of access, which is an increasingly competitive driver for SMEs.

Modern finance understands that opportunities don’t wait months for loan approvals. They need access to assets now.

Shire’s finance solutions keep money flowing through your business while still allowing you to benefit from the equipment needed to grow your business. Reach out to our team today to learn more.

The benefits of funding which is aligned with business needs and timings

The right type of funding can enable proactive growth rather than just reacting to gaps that need covering. It can also help to transform cash flow into a resilient part of your business. Asset finance offers flexible repayment options to suit different cash flow patterns. Businesses can choose predictable monthly payments for ease of budgeting or opt for seasonal structures, paying more during peak periods and less during periods of lower demand.

Additionally, for those who can afford to pay more off, early or additional repayments can often be built into the agreement. Acquiring assets through finance means your capital isn't tied to depreciating assets either. It's still in your business and can be used on investments that fuel growth, in aspects such as:

● Hiring

● Marketing

● Product development

The strategic benefits of funding extend beyond growth, too. Investors are more attracted to businesses with steady cash flow, and top talent is more attracted to firms and brands that know wages are secure.

Finance like this, that is aligned with a business’s needs, means they can plan strategically. The net result? Greater confidence to say yes to opportunities, be that expansion or new business. The latter of which will go a long way to actually improving the initial cash flow issue.

Shire’s solutions and approach to flexible repayments

Shire specialises in finance designed around the way SMEs actually operate in 2025. We prevent cash flow gaps that cause your business to miss opportunities thanks to our fast approval process, which gives automated decisions in six seconds or less.

We work with a wider supplier network that gives SMEs access to the latest tech, vehicles, and machinery, all without suffocating upfront costs, keeping liquidity in place for other needs. In our 30+ years working in this industry, we’ve seen the impact cost pressures have on UK SMEs, which is why our approach is about forming a partnership.

We don’t just provide capital, we build solutions that protect your long-term liquidity.

Tailored finance helps cash flow become a tool, not a trap

SMEs that work with Shire gain confidence that their cash flow isn’t working against them. We aim to help businesses focus on growth and innovation rather than worrying about covering wages or overheads.

So, ready to take control of your cash flow? Speak to Shire’s team today about solutions that are designed around your business’s needs.