Following last week’s historical referendum we now face a period of uncertainty. The Prime Minister has resigned and the Labour party are in disarray which will add to the turbulence.
Britain’s AAA credit rating is downgraded, sterling crashes to a 31-year low, FTSE 100 and other world stock exchanges have lost billions in share values. There will no doubt be at least a short term economic impact, with potentials for inflation to rise and perhaps the economy could potentially fall back into recession.
But none of us know the long term implications of the UK leaving the EU. And so our advice is to stay calm!
Uncertainty, insecurity and doubt will be in all of our minds but we all now need to work together and believe in Britain’s future.
If you are considering growth options such as hiring new staff, advertising/marketing spend, new products/areas or moving premises you might wish to hold off finalising those decisions, certainly for the next few weeks at least. If you are unsure and want to discuss any such plans then please get in touch.
We are not economists, but if you have a question for us, please get in touch and we will advise as best we can.
Please be assured that as things develop that we are here to assist you as far as possible.
Call us on 0161 359 4227/0845 054 8560 if you have any questions.
With the referendum later this week, the uncertainty as to what the future will hold for the UK economy seems to be increasing day by day.
Some say that leaving the EU would result in: difficulty trading with Europe, lower taxes, difficulty obtaining employees from the EU, increased instability in the UK economy.
Others say that leaving will result in: less red-tape, better trade agreements with non-EU countries, lower taxes, increased stability in the UK economy.
This is clearly over-simplifying a vital question for the future of the country. However, which, if either, is true and which option is in the best long-term interest of the country is a judgment we all have to make. (If you would like to consider a comparison of the two sides views regarding the effect on SMEs, you can follow this link to a document produced by UK200Group).
This does, however, highlight the level of uncertainty surrounding the subject.
Regardless of our individual views and, in fact, the result of the referendum on Thursday, for SME owners and managers, this is not a time to be distracted from keeping a close eye on your own businesses financial needs. Especially, should there may be a period of uncertainty or volatility, ensuring that your company has adequate, appropriate funding is imperative. This will give it the ability to navigate any challenges that may come its way.
The fact is that individual companies will continue to encounter, fundamentally, the same challenges, such as persuading customers to pay promptly, on a regular basis. This is an area where businesses need to take decisive action.
There are many approaches available when dealing with this type of situation. These will clearly include reviewing commercial/credit control procedures, as well as seeking additional funding.
Invoice Finance is an option that is often mentioned as providing a solution to this challenge in a way that can work along with your other efforts.
The flexible approach brought by invoice finance includes: –
- Receipt of an initial injection of working capital. Up to 90% of the value of your currently outstanding invoices can be advanced.
- Reduced credit allowed to customers as you receive cash from your invoices as soon as they are issued.
- Provision of an effective invoice collection service. This option can save you considerable time and effort, allowing you to focus on running the business.
- Protection against bad debts. By adding this you can have added security and peace of mind.
- There are now options available that don’t involve a minimum term contract which we can discuss. These can be utilized only when required and can therefore be very flexible.
Call us on 0161 359 4227/0845 054 8560 if this might be of interest to you, and we will discuss all the options open to you.