Business Leaders' Confidence High, Cash Flow Can Sustain It - CPA

Business Leaders’ Confidence High, Cash Flow Can Sustain It

13th April 2018.

Confidence in the economy among Britain’s business leaders has improved to its strongest since the triggering of Article 50, according to a poll from the Institute of Directors (IoD).

The survey of almost 700 bosses by the lobby group found a strong positive sentiment, coinciding with the recent transition agreement that has been made between the UK and Brussels. According to the survey, confidence in the overall prospects of the economy rose to one percent for the first time since April 2017. Despite the recent hike in business rates and the fall in consumer confidence, business leaders are managing to look ahead which is a good sign for our economic future.

Brexit uncertainty used to be the major concern for business owners, and it is encouraging that UK businesses are considering ways to survive our break from the EU, rather than just jumping ship. Financial services, in particular, were renowned for the number of companies who were fleeing to European offices, with US investment bank, Goldman Sachs, transferring all UK branches to Paris. It seems this may have been premature, however, and the UK has a chance at remaining one of the top places to do business. At the Credit Protection Association, our services have been used to not only recover owed funds but to restore some of the self-esteem and self-confidence that was lost after the 2016 Brexit vote. Now our services can be used to continue our confident streak.

The survey shows broader economic conditions remain the top concern of business leaders, echoing economists’ consensus expectations that UK GDP growth will slow this year to 1.5 percent.

Tej Parikh, the IoD’s senior economist, said it is likely to progress in Brexit negotiations “brought some much-needed reassurance” for firms but urged the government to provide more detail on its aims for trade and regulation after the end of the transition period.

Businesses demand strong leadership to drive the economy through the next few years of Brexit. To achieve this, business owners need to ensure their company has the all the correct tools to be successful, this means strong cash flow, reliable and prompt payers, and trained and well-managed staff. Now that confidence is high, businesses should allow credit managers to take hold of some of the responsibility.

At the Credit Protection Association, our debt recovery services strengthen our members’ businesses, affording them with an improved cash flow and a more stable financial position. Our credit management products equally help our members stand their ground, enhancing their credit score and ensuring they are charging ahead to March 2019 in the best shape.