Go figure
Some disturbing stats from the business world are putting the extent of the recession in perspective.
According to accountancy firm BDO Stoy Hayward, business failures are set to rise by 56% this year – that’s roughly 1 in every 56 firms. And that’s on top of the 18.2% increase, compared with 2007, in overall business closures the economy suffered in 2008 (according to business information provider, Equifax).
With this kind of pressure facing the UK’s small businesses, it’s no wonder a survey conducted by the Federation of Small Businesses found around 40% of business owners were anticipating cutting staff in the coming year. Many see this as a key way of managing cash flow. In the face of drastically reduced credit facilities, falling orders and ever-later invoice settlement, staff costs are often the most obvious overhead to reduce.
But if you haven’t previously considered invoice finance, your invoices might be the key to improving your cash flow, before you let go a valuable and experienced member of staff. By releasing funds in outstanding invoices you can raise that much-needed capital that your bank may have stopped lending.
At Cashflow UK, we’re experienced in finding the perfect finance partner to draw funds on your outstanding invoices to keep your business moving. You can give us a call on 0800 132 256 for free, impartial advice on whether or not this particular financial tool is right for your business.
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