Tag Archive: Economy

1. Remember, remember businesses go bang all year, not just in November!

   November 13, 2019 2:22 pm Leave a Comment

    

   Lets Reflect

   The UK’s political and economic climate continues to be one of the toughest in recent history. With the UK’s economic growth running at the lowest in 9 years.

    

   As we know several big brands have been forced to close, with a steady stream of others following month after month. The ‘ripple effect of debt’ on smaller businesses is significant and felt across industries.

    

    

   November is a month of reflection and looking back so it felt right to give thought to 16k+ companies who went into insolvency during 2019. What can we learn to limit further losses ?

    

   Some Facts

   Recent research from Hitachi Capital Business Finance (HCBF) shows that late payments are affecting small business of all sizes across all industries:-

    

   – 75% of small businesses (10-49 employees) are dealing with late payment issues.

   – Whereas 50% of sole traders are force to deal with debtor issues.

    

   It is a fact that late payments are notoriously hindering the ability of businesses to progress – not to mention the precious time wasted chasing overdue payments.

    

   Imagine This Scenario.

   You won the order, provided a great service or product and sent your invoice as agreed but when it’s time for them to pay you, they appear to have fallen off the face of the earth. Your calls are never returned, your emails ignored. You have concerns and maybe even heard a whisper that the business is ‘struggling’ . You fear the worst for your business, but what can you do?

   • Have you already spent too much time on this one client and have other priorities to focus on. After all, investing your time in an invoice already raised is not going to increase the value of the invoice. Maybe now is the time to hand the debt over to a recovery agency like us to collect?

   • If you’re determined to press on yourself, then we’re still there to advise and guide you as to the best way forward. Why not benefit from our resource and techniques to aid in your recovery and diligence. You will soon be able to tell whether you’re going to be paid, or whether your debt may be lost.

    

   Useful Resources & Links We Advise.

   • Companies House – Search for information about the company & people.
   • Credit Reference Agencies – See what the financial status of the company is.
   • Websites & Social Media – Check the client’s own sites, look at reviews etc.

    

   If you have any questions or would like further information on our advice above or indeed simply want to discuss what can be done, please get in touch : Contact Details

    

   Your benefits from outsourcing to Corp & Comm are :

   • Unlock Cash
     Pass aged debts and late payments to us and improve your precious cash flow.
   • Reduce Costs
     Save the time your business spends chasing payment? What does that time translate to in cost, opportunity cost, bank charges etc?
   • Flexibility
     Outsourcing debt recovery or credit control to experts means you will have improved cashflow that can pay creditors or make investments to allow your business to thrive.

    

   Simply gives us a call 01535 654 594 or fill in our Contact Form and one of our advisors will be in touch soon to discuss your requirements with you.

    

    

2. British Steel has brought UK economics back into stark focus

   June 12, 2019 11:02 am Leave a Comment

    

   Brexit continues to keep the continued poor state of the economy out of the headlines. However, the spectacular collapse of British Steel has brought economics back into stark focus with a bang.

    

   Anybody who has a measure as to financial indicators knows that the liquidation of British Steel was always on the cards. Plus it was always going to be sooner rather than later.

    

   

   Simple diligence investigations

   • Look into the parent company, Greybull’s other purchases shows numerous high profile business failures in recent years. Most notably electrical giant Comet and then Monarch Airlines. All of which ultimately cost the taxpayer a whopping £60m.

    

   • British Steels share price fell a staggering 80% over the last 14 months. An clear indication that experienced traders were pulling their money out, rather than investing in.

    

   • A review of British Steel’s accounts show a cash injection of £154m in the last financial year. Followed by a Government loan to the tune of £120m. All this demonstrates a serious miscalculation in both future trading and the accounting process.

    

   Every business owner whether at the head of large or small company, know it’s still very tough economically. So let’s be frank, it’s never been easy and it never will be. It’s how we educate, identify and manage the financial pressures that counts.

    

   Business hunches are usually correct. If you have doubts about a customer or a supplier, then there are quick and easy ways to determine whether you may have increased exposure or risk.

    

   Take the above examples about British Steel as a guide ;

   • Simple checks through Companies House and credit reference agencies will tell you who in fact is behind a company and that they may not be all that they seem.

    

   • Larger businesses with a share issue allows you to review periodic results and ratings, which can provide an indication as to whether a company is on the up or on the slide.

    

   • Most limited companies are forced to file financial accounts that are available to the public. By reviewing these, you can determine how well, or how poorly, a company is being run.

    

   British Steel isn’t the first and it certainly won’t be the last industry giant to fold. What’s important is what we learn from the failure. What indicators we use for the future and how we ensure that we’re not one of those caught up in the ripples of debt that ultimately flow down the supply chain.

    

   How can we help?

   To learn more about the benefits and costs involved in outsourcing your credit control to Corporate and Commercial please get in touch. We’re a friendly and professional team who want to help your business succeed. Email info@corpandcomm.com or Call 01535 654 594