Global Trade Review: Cost of Working Capital Soars for SMEs, Survey Finds
08 April 2021 |
An April 4 article in London-based Global Trade Review had this to say about C2FO’s 2021 Working Capital Survey of more than 6,700 small- to mid-sized enterprises (SMEs) worldwide:
“A global survey of SMEs has found a “precipitous rise” in the cost of working capital finance, as well as growing concerns over late or extended payments from SMEs’ customers…
Though the vast majority said they had enough liquidity on hand to survive for the next six months, C2FO says there has been a sharp increase in the cost of short-term working capital finance that appears to be concentrated in the SME market.”
The article highlights the survey findings that roughly two-thirds of worldwide respondents said their cost of borrowing is over 8%, and that the cost of working capital finance had increased by 30% to 35% in the US and many parts of Europe.
To read the full article in GTR, click here.
To download our white paper report about key findings from the 2021 Working Capital Survey, click here.