Almost a third of businesses are seeking extra funding – ACCA

Accountancy body calls on Government to review rescue packages

Photo: Gareth Chaney/Collins

Photo: Gareth Chaney/Collins

 

Almost a third of businesses are seeking additional funding from banks, investors or the Government as a result of cashflow problems caused by the Covid-19 pandemic, research from the Association of Chartered Certified Accountants (ACCA) Ireland shows.

Some 31 per cent of businesses are securing additional funding while 38 per cent admitted that they have cash flow problems. Meanwhile, three in five organisations are focusing on the medium term while the same proportion have reduced or stopped their purchases altogether.

The unhealthy picture has prompted the ACCA to call on Governments to review economic rescue packages and enable a “return to sustainable growth”.

“Our data for June reveals continued cashflow challenges, with more than a third in Ireland saying this is a problem. A similar number of businesses are moving now to secure additional funding,” said Caitriona Allis, head of ACCA Ireland.

‘Greater concerns’

“Since the March research, the new data reveals greater concerns over financing and debt issues, and given the global economic climate, it means these will be difficult matters to resolve.”

Across Ireland, 156 responses were received from a panel of finance professionals. The results show that 15 per cent are predicting negative revenue growth of 50 per cent of more as a result of the pandemic.

On working conditions, 86 per cent of businesses have adopted flexible working from home strategies while 46 per cent have adopted staff rotas to accommodate social distancing requirements.