Institute of Chartered Accountants in England and Wales

Credit Cards Can Offer SMEs Convenience says ICAEW

Credit cards can offer SMEs convenience, says the Institute of Chartered Accountants in England and Wales (ICAEW) Credit cards can be seen as an expensive and risky way to borrow but they are often a convenient and flexible option for Small and Medium size Enterprises (SMEs) to fund expenses. Providing debt is controlled, credit cards can be a good way to make purchases and finance day-to-day outgoings. Clive Lewis, ICAEW’s Head of Enterprise, explains: “With difficult economic conditions and constrained access to finance, many small businesses opt for forms of finance that offer quick and easy access to cash. Besides being secure, credit cards offer flexibility and can help businesses to monitor and control expenditure. With a wide variety of company or corporate payment cards... »

ICAEW Priorities for Economic Recovery Budget

The ICAEW has today urged the Chancellor to ensure his next week’s Budget is focussed on building a stronger recovery. The call comes as recent exports and inflation data has contributed to fears of a double dip recession and as economic growth remains fragile. The ICAEW has said that the Chancellor should: Make no major tax changes for businesses The Budget should not add to the regulatory burden for companies. The change in the VAT rate in the 2008 Pre-Budget Report caused implementation headaches for many small businesses at a time when they least needed it. The changes then had to be reverted a year later. The ICAEW wants no further complexity to be made to the tax system, when it is already over complicated. Timelines confirmed for government schemes to help businesses plan As c... »

Credit Card

Calls for Cap on Credit Card Charges

The Federation of Small Businesses (FSB) has called on the Government to cap interest rates on credit cards to help small firms survive the recession. FSB national chairman John Wright said putting a ceiling on charges would reduce business costs and free up much needed cashflow. Research from the FSB revealed that 26% of entrepreneurs use their personal credit card to finance their business and 23% use a company credit card. “With interest rates at 1.5% and falling, the Chancellor and the Governor of the Bank of England must look into capping interest rates charged on credit cards,” said Wright. “A cap on interest rates would not only reduce business costs but give consumers a real boost and cut the cost of borrowing,” he added. However, the Department for Business... »

Recession

BCC confirms Recession Fears

The UK economy is already in recession and economic conditions are likely to get worse, the British Chambers of Commerce (BCC) has warned. The BCC’s quarterly economic survey revealed that the economy was under immense pressure in the third quarter of this year, with many key national balances in negative territory, and a collapse in confidence across all business sectors. BCC economic adviser David Kern said: “The alarming third quarter results point to worsening dangers of major economic downturn and rising unemployment. The results support the view that a UK recession has started and the downturn is getting worse.” While most business groups welcomed the Bank of England’s decision to cut interest rates from 5% to 4.5 percentage points, the BCC said that further a... »