Nearly half of Scotland’s small businesses are struggling with cashflow as they attempt to prepare for Brexit, according to the latest confidence tracker from Bibby Financial Services.
Almost 160,000 – or 46 per cent – of Scottish small and medium-sized enterprises (SMEs) suffered cashflow issues in the second quarter, while 34 per actively sourced funding in the period.
Invoice finance specialist Bibby indicated that smaller firms were turning to additional investment to offset risks associated with a no-deal Brexit.
More than half (54 per cent) of SMEs in Scotland believe a recession is likely in the next 12 months.
Sharon Wiltshire, UK commercial director at Bibby Financial Services, said: “With increasing competition, rising materials costs and the broader economy stalling, businesses appear to be sourcing finance to cope with these challenging conditions rather than investing for growth.
“With the current uncertainty set to continue, it has never been more essential for SMEs to be aware of all the funding options available to them before they commit to more borrowing.”