Posted on 17th Jul 2009 by Alan in Unpaid invoices | Comments Off
Unpaid invoices are a problem for many businesses. With banks less willing to help businesses with, lending or , reducing or removing overdrafts, businesses are using the suppliers to fund them by way of unpaid invoices.
Having a successful business with clients with whom you have a long working relationship does not preclude you from unpaid invoices. Those long standing clients may have financial problems of their own and are often are left with no alternative but to dump their burden on you.
This tale is typical of many businesses both large and small where they appear to be healthy and growing in terms of sales but that growth is being sabotaged by slow paying customers and unpaid invoices.
So what do you do to prevent being strangled by cash flow problems and unpaid invoices? Read the rest of this entry »
Posted on 17th Jul 2009 by Alan in Unpaid invoices | Comments Off
Unpaid invoices have been always been a problem for businesses, but ever more so in the current financial climate.
With banks lending less money many businesses are finding it difficult to get additional lending or extensions to their overdrafts. Many are being pressured by their bank to reduce current overdrafts. These businesses are pushed to try to extend their payment terms without advising their supplier which leads to slower payments and unpaid invoices.
It’s a fact that most businesses will suffer unpaid invoices which can lead to bad debts. Historically SME’s have written off annually £3,500 in unpaid invoices and from our experience this national average figure is growing. Read the rest of this entry »
Posted on 2nd Jul 2009 by Alan in Invoice Factoring | Comments Off
Invoice factoring is ever more to the forefront of bank managers’ minds when they review clients borrowing requirements. It generally provides greater income to the bank so managers who are under ever more pressure to increase income often recommend Invoice Factoring when it is not appropriate. So Beware.
The disadvantages of invoice factoring
Invoice Factoring can often solve immediate cash flow problems. But you have effectively sold your debts and have little or no control over the actions of the factoring company. Invoice factoring is a multiple of the cost of an overdraft. Many businesses see invoice factoring as a habit - something they would desperately love to be able to do without. Not exactly the most positive endorsement. Read the rest of this entry »
Posted on 1st Jul 2009 by Alan in Cashflow problems | Comments Off
As the country enters into a recession, people may encounter yet another term in the language of the insolvency practitioner; CVA (Company Voluntary Arrangement).
A lot of people may already be aware of an IVA (Individual Voluntary Arrangement) where an individual offers a deal to his/her creditors in exchange for avoiding Bankruptcy. Read the rest of this entry »
Posted on 1st Jul 2009 by Alan in Cashflow news & advice | Comments Off
One in five UK accountants have confirmed that their clients have been refused credit or had funding restrictions imposed in the light of the credit crunch. The findings, from a recent survey conducted by Venture Finance, provide the first real evidence that UK SME’s are feeling the effects of the well-documented economic downturn.
A quarter of the accountants surveyed believe their clients are more nervous about investing in their business. Forecasts are now showing that the number of business failures is expected to increase by 18 per cent by the end of 2009 so it comes as no surprise that many SME’s are feeling vulnerable. The promised easing of bank finance to businesses promised by the chancellor seems to have evaporated. Read the rest of this entry »
