There are 3.1 million companies trading on credit in the UK. Unfortunately, 1.4 million of these have had their cashflow negatively impacted by customers who don’t pay their invoices on time, with many more being subject to poor payment practices.
SMEs are the heart of the economy, and are often community-based. This has a huge impact on the local neighbourhoods that they live and work in. Job losses, business closures, family pressures, and poor mental health are not uncommon side effects.
The UK Government has put a charter in place to help SMEs get paid by big businesses and government agencies. However, there is a lack of support for SME to SME or business to consumer debt. The Government stimulus has given a distorted view of business performance since the start of the pandemic.
Adding other factors; Brexit, furlough ending, the abolition of the VAT reverse charge within the construction industry, zombie companies and fresh air invoicing, many business directors find themselves needing to repay the loans having used personal assets as guarantees against funding. There is undoubtedly a severe and unsustainable disruption to the UK economy at play.
Many firms will need to rethink how they manage their cashflow and optimise their working capital position. At itsettled we’ve pulled together a series of resources showing business owners how they can do just that:
Our credit management and debt recovery software has been specifically designed to help business owners and their teams. itsettled collects your invoices faster and boosts your cashflow - giving you more time to work on what's really important to you.
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