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This paper assesses the dual impacts of the COVID-19 financial crisis on working capital management and Cash flow/Liquidity from the perceptions of the owners, and managers of UK Micro,Small and Medium Sized Enterprises(MSMEs).The paper adopts quantitative approach to analyse the data collected through a questionnaire survey from a sample of 150 NEX Exchange, FSB and AIM listed MSME data bases. The paper applies SEM methodology to test on responses from 62 Owners and managers. The results show that the COVID-19 financial crisis has significant adverse impacts on both the working capital management policies and cash flow/liquidity positions of UK MSMEs, through both observed and latent variables. The causes of these adverse impacts are reduced customer demand (market channel) and the anxiety of a positive economic outlook(emotional channel).
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