New research has found that the majority of small business owners who received Bounce Back Loans from the government in the wake of COVID-19 expect to use up this cash before next month.

More than one million owners of small firms in the UK applied for and received Bounce Back Loans, but according to the latest study by MarketFinance, the average amount small firms have left in reserve is around £9,000. Most of the business owners that took part in it the study indicated that this would only be enough to tide them over until the start of next month.

MarketFinance found that 39% of those firms that received one of the loans used the majority of the funds to pay outstanding amounts due to their suppliers, while 29% used the money to create online shopping options, such as e-commerce stores, in a bid to survive the pandemic and lockdown restrictions.

However, while the financial situation for small firms remains perilous, there is positive news, as Rishi Sunak is expected to announce extensions to the various support schemes, including the Bounce Back Loans and the Coronavirus Business Interruption Loan Scheme. This comes in the wake of a rise in COVID-19 cases, and it could provide a lifeline for those firms that are close to running out of cash.

A reputable small business accountant in South Yorkshire or any other UK region is another option that firms in financial difficulties can turn to if they need advice about managing and improving cash flow.