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Log In / Register | Mar 18, 2018

Half of Small Businesses Have Less than 30 Day Cash Buffer

JPMorgan Chase Institute conducted a study of 597,000 of the bank's small business account holders and found in its inaugural report on the small business sector that:

Half of U.S. small businesses have a buffer to support 27 days of cash outflows in the event of any major disruption bringing a complete stop to their ability to sell goods or services, according to a JPMorgan Chase report released Wednesday that analyzed the 2015 banking transactions of nearly 600,000 small businesses.

Those buffers range widely, however, with a quarter of businesses having less than two weeks of cash on hand, and another quarter enjoying more than two months worth. — Alexander Soule, The Hour 

The median small restaurant holds just 16 cash days in reserve.

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