The fallout from the Jaguar Land Rover cyberattack has underlined the vulnerability of small businesses to such acts, while a BT report has highlighted the potentially crippling costs involved. How can firms balance critical investment with safeguarding cash flow?

How is the JLR cyberattack affecting small businesses?

Operations at Jaguar Land Rover may be finally getting back to normal after the August cyberattack, but details are only just emerging of how acutely the company’s supply chain, which includes small firms, has been affected.

According to reports, small businesses that supply the automotive giant have been the hardest hit, with the halt in production disastrous for these small suppliers. The firms have faced six or seven weeks without orders, which have been delayed or cancelled. This impact, and its financial consequences, is expected to felt for another six months.

Which small firms are most frequently attacked and why?

In more direct terms, research from BT has reemphasised just how vulnerable small firms are to cyberattacks. The study shows that scouting raids by cyber-attackers have increased by 300% over the last year, with company laptops, mobile phones and other connected devices being targeted.

According to the report, ransomware attacks are particularly damaging for small businesses, with accountancy, legal and consultancy firms the most frequently targeted, followed by retail operations and hospitality and leisure sector firms.

These businesses are often more vulnerable because of their limited cyber-security resources, including hardware and staff training. The research reveals that almost two in five SMEs have no cyber-security training. As for the average cost of an attack for a small firm, the sum is put at almost £8,000, which is enough to break many businesses.

How alternative finance can help with spending on cybersecurity

The information coming out of Jaguar Land Rover and the research from BT are yet further reminders of how vulnerable small firms are to cyberattacks, whether directly or indirectly. At the same time, it is hardly surprising to learn that these businesses are struggling to find the resources to invest in more advanced hardware and software, and greater training.

How can they juggle the pressures of investment with protecting cash flow? This is where alternative finance can help.

Small business lending from traditional sources remains subdued in Q4 2025, with almost 40% of firms finding accessing affordable finance one of their biggest challenges. Against this backdrop, services such as invoice finance, asset finance and peer-to-peer lending are proving a vital source of capital for small businesses in the current funding climate.

These alternative finance facilities, which offer a more easily accessible, affordable and personalised approach to lending, are helping small businesses survive and target recovery, stability and growth.

Notably, the Growth Guarantee Scheme is providing a wide range of finance facilities to smaller firms, including asset finance, invoice finance and asset-based lending. This is further proof that alternative lenders are increasing filling the small business funding gap.

Finance options for small firm cybersecurity investment

When it comes to cybersecurity, small businesses are yet again caught between a rock and a hard place. Market conditions and pressure on cash flow make investment highly challenging, but attacks are increasingly targeting these firms because they lack sufficient levels of cyber-protection.

These businesses have to find a way to invest and access to finance is critical. At a time when traditional lenders remain cautious, it is important that key decision-makers are aware of all the finance options available to them, including the services of alternative lenders

To find out more about A&T Business Associates services, contact Steve Bowles on 01903 602211 or steve.bowles@atbusinessassociates.co.uk.