Cashpoint Cuts Threaten Small Business Cash Flow

1st March 2018.

Cashpoint cuts threaten to wipe out small businesses, campaigners have warned, as 250,000 are located at least a kilometre from a free ATM.

The Federation of Small Businesses (FSB) has warned that the removal of cashpoints is threatening small business as many rely on them for day-to-day tasks. Some small newsagents or corner shops even boast an on-site cashpoint, and its presence accounts for a high portion of customer traffic.

High-interest rates, business rates, and inflation are already plaguing retailers across the country. Many are seeing their cash flow diminish as fewer shoppers trudge the high streets. This is more intensely felt by small business owners, whose capital is already limited. At the Credit Protection Association, we help many of our small business members free up their cash flow as new regulations and rates hikes take hold.

Experts have warned the move will greatly impact the number of free cashpoints, with one in five predicted to disappear from Britain’s high streets within four years, according to the ATM industry body.

Mike Cherry, FSB national chairman, said: “Access to cash is vital to local high streets all over the country. Many small firms are already miles from their nearest free-to-use cashpoint.”

Small businesses may have smaller capital and less room to manoeuvre, but they remain the lifeblood of the economy. If the numbers of cashpoints are considerably reduced not only are small businesses going to suffer but also families and elderly individuals in rural areas, who already have limited access to a bank.

At the Credit Protection Association, we can offer some solace to small business owners who have seen their nearest cashpoint disappear. Our debt recovery services free up cash flow and give our members the opportunity to discover new ways to attract customers to their doors. While fewer cashpoints continue to hurt small businesses, by freeing up cash flow our small business members could digitalise their workplace, renovate their offices, and even launch larger stores. FCA is right that fewer cashpoints are damaging to small businesses, but they are not without help.