iscover
iscover 
A recent YouGov survey commissioned by Prospa revealed just how tough businesses are doing it, with nearly one in five SMEs down to zero cash reserves. Without a buffer for emergencies, many of these businesses are left vulnerable as they plan for the year ahead.
However, this is where brokers come in. The broker community is uniquely positioned to help SMEs navigate similar challenges by providing strategies to strengthen cash flow and build financial resilience. By proactively advising clients on how to get ahead of overdue payments, utilise modern technologies, and access funding without touching emergency reserves, brokers can ensure SMEs not only survive, but thrive in 2025.
Getting ahead of overdue payments
Late payments from larger businesses and enterprises are a persistent issue for SMEs, with one in four big businesses taking over three months to pay their SME customers and just three in 10 paying within the first 30 days. This challenge often creates cash flow disruptions and stressful situations for SMEs needing help maintaining their cash reserves.
To counteract this, brokers can encourage SMEs to develop proactive strategies that motivate clients to pay on time and reduce uncertainty around cash flow. Offering small discounts or incentives for early payments can often nudge clients to settle invoices promptly, while automated payment reminders ensure nothing is overlooked. Flexible payment terms tailored to both parties can also be an effective approach, securing a stable cash flow.
By addressing overdue payments at the source, SMEs can reduce delays, improve cash predictability, and channel their energy toward business growth.
Power up processes with technology
For many SMEs, cash flow management remains a manual and time-consuming task, often dependent on outdated spreadsheets and paper invoices prone to human error. These inefficiencies make it difficult for SMEs to maintain real-time visibility over their financial position.
Brokers can assist by guiding SMEs toward modern technology solutions that streamline cash flow processes and improve accuracy. For example, real-time accounting software solutions allow businesses to track income, expenses, and cash flow in a single system, providing a clearer understanding of their financial health. Automation tools can further reduce administrative tasks by managing recurring invoices and payment reminders while outsourcing specialised tasks like bookkeeping or payroll to professionals can increase efficiency and accuracy.
When embracing technology, SMEs can save valuable time, reduce costly errors, and take a more proactive approach to managing their cash flow, enabling them to adapt to shifting financial conditions.
Access funds without touching cash reserves
The reality for SMEs today is that times are tough due to the state of the economy, so many are operating under immense pressure. This is by no means about budget mismanagement, but about navigating prolonged uncertainty when cash flow is more likely to be stretched thin. For example, many SMEs turn to their reserves to pay commercial rent and utilities or to purchase new equipment essential to their operations, especially if they are awaiting late payments from larger enterprises. However, these reserves are meant to be a safety net for emergencies or future growth opportunities.
In these instances, brokers should consider alternative lending options for SMEs, which would allow them to manage daily – and unexpected – expenses without depleting their reserves. Small business loans with flexible terms can, for example, provide reliable capital, while invoice financing unlocks funds tied up in unpaid invoices. So, when times are tough, brokers can advise SMEs to safeguard their reserves for unexpected situations, ensuring they are prepared to tackle challenges or seize growth opportunities as they come through.
As SMEs continue to face financial headwinds, brokers have an essential role to play in equipping their clients with strategies to stabilise cash flow, embrace technology, and protect their emergency cash reserves. With the right guidance, SMEs can transform uncertainty into opportunity, especially as experts predict a much-needed relief for interest rates. This will ensure SMEs are prepared to tackle whatever 2025 has in store and remain positioned for long-term success.
At the same time, brokers themselves are also navigating a complex landscape, with increasing expectations to deliver fast and tailored solutions to clients. That’s why tools like Prospa IQ can help brokers thrive by streamlining processes, offering quick access to critical insights, such as on-the-spot accurate quotes. By using such tools, brokers can provide more targeted support, ensuring they remain trusted partners to their SME clients and helping them adapt and grow in the year ahead. To read more about such tools, see here.
Roberto Sanz is the general manager of sales and partnerships at Prospa.