09/04/2026
Is your business profitable on paper but struggling for cash? You're not alone. 👇
For UK small businesses operating under £3 million in turnover, 2026 is proving to be one of the most difficult trading environments in recent memory — and cash flow is at the heart of it.
The numbers tell a stark story. More than 8 in 10 SMEs are experiencing cash flow difficulties. Nearly two thirds of all invoices are being paid late. 42% of small businesses have been unable to pay staff on time. And an estimated 38 businesses close every single day — not because they lack customers or work, but because the money simply doesn't arrive when it needs to.
Late payment is the most visible problem, but it sits alongside rising costs that can't always be passed on, growing tax and compliance burdens, and the pressure that comes with winning new work — which often creates cash demands long before any revenue is received.
Here's the thing that catches many business owners off guard: being profitable and having cash are not the same thing. The gap between the two is where businesses quietly get into serious difficulty.
There is reform on the horizon — the government is consulting on tougher payment legislation and a Fair Payment Code has been introduced. But for anyone managing cash flow pressures right now, that offers little comfort this week.
If any of this sounds familiar — whether it's your business or someone you know — the most important thing is not to wait for the situation to resolve itself. It rarely does.
We've put together a more detailed piece on the key pressure points and what early action can look like in practice. Worth a read if cash flow is on your mind.
Rothamere — we help businesses resolve commercial and cash flow pressure before it becomes critical. Drop us a message if you'd like a conversation.
https://rothamere.co.uk/