Financial Choices Vital in “New Era” for Business
With the CBI this week unveiling its vision for a “new era” for businesses, times will undoubtedly change for UK firms says Edward Rimmer, chief executive at independent invoice financier Bibby Financial Services.
“Businesses have been scarred by the financial situation they have found themselves in, be this frustration with accessing credit, the knock-on effect of suppliers going into administration or indeed the ongoing problem of late payment.
“New regional banking institutions, as the CBI has suggested, would indeed go some way to helping businesses on a local level for example, and enable new sources of credit to be accessed by more firms.
“But it is easy to see how a new generation of entrepreneur will rise from the recession, taking fewer risks, managing a leaner business, and seeking more flexible and secure streams of finance.
“From our own research in July of this year, we identified a new breed of business owner – a new ‘super entrepreneur’ evolving to survive the downturn*. This evolution includes putting in place new plans for the future, particularly when it comes to finances. With 79 per cent of small and medium-sized firms making, or planning to make, positive steps in order to survive and face economic uncertainty head on, we would encourage firms to look to the long term.
“The issue is of survival, and giving small and medium sized-firms the best chance of staying afloat. Invoice finance provides businesses with flexible and supportive ways to bridge the gaps where cash flow is vital and to plan for growth – something the new breed of British businesses seem keen to tackle early in 2010.”
Bibby Financial Services is able to help businesses reviewing their plans for this “new era” and currently assists around 3000 firms in the UK with their cash flow requirements.