Across the UK, many SMEs are winning new work, increasing revenues and expanding operations. On paper, things look strong.
But behind the scenes, cashflow pressure is still a common challenge.
This is the working capital gap, the time difference between when a business pays its costs and when it receives payment from customers.
For most SMEs, wages, materials and supplier costs are paid upfront, while invoices may take weeks or even months to be settled. As businesses grow, this gap often widens. More activity means more upfront spending and more cash tied up in unpaid invoices, stock and operational assets.
That’s why many profitable businesses can still feel stretched day to day.
Several factors are making the working capital gap more visible across the UK, including longer payment terms, rising operating costs, supply chain complexity and the investment needed to support growth.
Over time, managing working capital becomes less about individual transactions and more about understanding how cash moves across the entire business. Without accessible liquidity at the right moment, businesses can find themselves delaying hiring, investment or new opportunities.
In this guide, Lauren Couch, Head of Asset Based Lending at Aldermore, explores what’s really driving the working capital gap for UK SMEs and how businesses can take a more joined-up view of funding as they grow.
Download the full PDF to learn:
Download the full guide to understand what’s really holding SME growth back — and how businesses are adapting.
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Learn what cashflow is, what causes cashflow pressure, how SMEs can improve it, and when finance may help bridge short term gaps.
Learn what working capital is, the challenges SMEs face, how to improve cashflow, and when working capital finance could support growth
Learn how SMEs can fund business growth through investment, working capital support and finance solutions that protect cashflow.