Cash flow remains a significant challenge for large numbers of UK businesses, according to new research from Santander Corporate & Commercial. Almost one in six respondents in a UK-wide study said they were “very” concerned about managing cash flow effectively over the next 12 months, with a further 27 per cent saying they were “quite” concerned.

About half reported being hit by at least one recent cash-flow setback, with late/ failed payments from customers (24 per cent), weak sales (eight per cent) and unexpected costs and charges (seven per cent) the top three reasons cited.

Businesses in Yorkshire reported significant concerns, with nearly half either “very” or “quite” concerned about successfully managing cash flow over the next 12 months, most citing late payments.

Yorkshire companies were confident about using alternative finance solutions, with 12 per cent either using invoice financing already or intending to do so over the next 12 months to support or expand their business.

Neil Williams, regional director for Santander Corporate & Commercial, said: “Cash flow clearly remains a huge challenge for thousands of UK businesses, particularly for firms based in Yorkshire and Humberside.

“However, many businesses are missing out on effective alternative financing solutions, such as invoice or supplychain finance – or relying excessively on loans and investments – and in doing so are opening themselves up to unnecessary cash flow volatility and business risks.”