the institute of credit management

Tighter Credit Terms Squeezing Small Businesses

Small businesses are being forced to rethink their sales strategies by suppliers tightening credit terms in response to economic downturn. Research by credit management specialists Graydon UK found that more than half of 400 firms surveyed plan to play it safe by further tightening their credit criteria during 2008, with only two per cent feeling confident enough to extend their current credit term policies. As a result of this ‘safety first’ culture, businesses in all major sectors are having to defer or cancel plans to launch new products or ventures because they cannot get the credit they need. “Suppliers are looking long and hard at those companies who are asking them for credit and with business insolvencies increasing at an alarming rate the ‘safety first&rsqu... »