SMEs Urged: Address Cashflow Now

Steve Howard of The Climate Group on climate change and the Copenhagen climate deal

Steve Howard of The Climate Group on climate change and the Copenhagen climate dealWith lack of cashflow a key factor in the majority of business failures, leading independent invoice financier Bibby Financial Services is urging small businesses to address their finances now to avoid becoming another statistic.

Despite insolvency experts predicting a wave of business failures next year as evidence mounts that the UK is at the ‘midpoint of a W-shaped recession’ in which insolvencies peak after GDP stops shrinking, Bibby Financial Services believes there are many options available to firms that could prevent them entering a Company Voluntary Arrangement (CVA) or going into liquidation.

Edward Rimmer, chief executive, UK and Ireland, Bibby Financial Services said:

“Despite well-intentioned efforts by the Government to increase the funding available to small and medium sized businesses including ‘prop up’ measures such as tax deferments, the fact of the matter is that while they may provide a temporary buffer against the storm, they are unlikely to be the lifeline that many need in order to survive.

“We are urging small businesses to take a closer look at their cash flow and review the funding options available rather than go down the road of no return. Invoice finance and other funding options can provide a long term viable solution to help businesses improve cash flow and their chances of survival before it’s too late. They work by releasing the cash tied up in unpaid invoices enabling businesses to meet those vital creditor payments such as PAYE and taxes, not to mention the more obvious supplier payments and of course, sufficient funds to foot the wage bill.”

At a time when, according to the latest figures from the Finance & Leasing Association (FLA) access to credit is still tight for most borrowers, it is clear businesses need access to fast, flexible, effective cash flow to improve liquidity now and to ensure they are still trading and able to take advantage of the upturn when it comes.

Edward Rimmer continued:

“Bibby Financial Services’ doors are wide open to all small and medium sized businesses considering their funding options. Unlike traditional banks, which can be inflexible and often take a ‘one size fits all’ approach, alternative funding providers typically take a much more in-depth view of a business and take into account the entire financial picture when making a funding decision.

“Despite the fact that the UK economy isn’t out of the woods yet and things may get harder before they get any easier, Bibby Financial Services, and other funding providers, are very much still open for business and ready to give businesses the vital lifeline they need.”

For further reading be sure to take a look at our many articles on cashflow management.

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