Business Recovery & Invoice Factoring tops the agenda
UK Businesses are braced for a real rough ride of cash flow problems and potential business recovery activity
It’s now acutely apparent that the credit crunch has imposed some really tough challenges on UK Business. Banks being even more cautious than ever before, overdrafts are less are easy to extend or indeed obtain and the long term relationship you had with your bank manager doesn’t seem to add much weight anymore. Consumers are now thinking twice before they buy and Creditors are looking for faster payment while Debtors want extended payment terms which are now starting to create the classic cash flow squeeze.
R3 is also concerned at the number of corporate insolvencies have increased, with the total amount of receiverships, administrations and CVAs (Company Voluntary Arrangements) dramatically increasing since the same time one year ago.
“This huge rise in corporate insolvencies is confirmed by the number of people our members are seeing coming through their door. In fact, in a recent survey, 90% of Insolvency Practitioners thought that the number of corporate insolvencies would jump in 12 months time, indicating that the worse is still to come. Construction, retail and leisure are especially vulnerable sectors.”
With this in mind Enable Finance has specifically formed a team of business recovery professionals to sit alongside its corporate finance department.
Feedback from the corporate finance team say that cash flow is one of the biggest concerns raised by UK business and invoice factoring is now one of the most popular asked for business finance solution asked for by their clients.