SMEs face liquidity risks despite reported profits

Small and medium-sized enterprises (SMEs) are increasingly facing liquidity challenges despite reporting profits. According to ERA Group, a discrepancy is growing between operational profitability, often measured by EBITDA, and actual available cash flow.

This issue is driven by factors such as rising debt costs, payment delays from customers, and the need for unforeseen investments. ERA Group warns that this trend may become more visible by 2026. While bankruptcies decreased by 5% over the last year, the use of financial solutions increased by 12%, reflecting the difficulty companies face in managing rising costs and expensive financing.