Two out of five small businesses expect to run out of cash with six weeks, according to a new survey.
And one in five small businesses say they will run out of cash within three weeks.
Small business revenues are set to decline by an average 60 per cent in April, with 69 per cent of businesses in leisure and hospitality expecting revenue to totally disappear.
>See also: Nearly 1m businesses on brink of collapse, warn accountants
Three quarters of small business say that coronavirus has already badly affected their business, and this looks set to worsen in April. Eighty per cent say their income will continue to decline this month, with more than one in three (36 per cent) expecting income to crash by more than 90 per cent.
Businesses in IT and telecoms expect to be least impacted, with just under a quarter (23 per cent) saying they don’t expect to see any decline in their revenue compared to April last year.
Oliver Prill, chief executive of business banking platform Tide, said: “From the conversations we have had with our 150,000 SME members we knew the situation was very tough, but this data has revealed just how tough it is, and how much harder it is likely to get for small businesses to weather this storm.
“There now needs to be a focus from the government, and other organisations involved in delivering financial support, to do everything possible to get the money into small businesses’ hands as soon as possible.”
What coronavirus small business help is available for free?