Credit Managers Can Help Thaw UK Businesses After 'Big Freeze' - CPA

Credit Managers Can Help Thaw UK Businesses After ‘Big Freeze’

5th March 2018.

According to recent figures, the recent spell of severe weather could cost the economy at least £1 billion a day, with the construction industry hit hardest.

Economists fear this could be the most expensive snow storm since 2010, with GDP growth threatened to halve in the first three months of the year. Industries that rely on outside manual labour or transportation experienced severe delays on roads and many builders were unable to work. Many businesses within the services sector were unable to open due to the weather, while those who did, saw few customers due to the difficulty in getting about.

Business owners experience many obstacles; if it’s not economic conditions disrupting trade it’s bad weather physically stopping them from getting to work. It is important therefore that you prepare for all eventualities in business, whether it’s economic or environmental. At the Credit Protection Association, many of our members approach us after suffering from stunted cash flow. Our debt recovery services recover long-forgotten funds, allowing our members to spend their cash on a new expansion project, or set some aside for a rainy- or snowy- day.

Howard Archer of the forecasting group EY ITEM Club told The Observer: “It is possible that the severe weather could lead to GDP growth being reduced by 0.1 percentage points in the first quarter of 2018 and a further 0.2 percentage points if the severe weather persists,”

A GDP growth rate of 0.2 per cent would be half the expected 0.4 percent rate.

The worst isn’t over yet, with some predicting severe flooding in certain areas as the snow and ice contines to melt.

On Saturday, freezing rain and high winds left hundreds of homes without power, while the thawing conditions caused a number of pipes to burst on the Isle of Wight

Nevertheless, temperatures in most places are due to gradually return to normal by tomorrow, with highs of 9 degrees Celsius forecast in the South-West.

Every child prays for a snow day, while every employed grown-up dreads it. Severe weather brings transport delays, and icy roads make it harder for deliveries to reach their destination. If you are a business owner, the last thing that you need is another spot on your trading record. If your suppliers can’t supply goods your supply chain comes crashing down. This does not have to lead to the world’s end however, and having an extra bit of cash would help your business while your suppliers catch up. Consoling impatient customers with a larger supply or discounted services will help you retain your good reputation.

At the Credit Protection Association, we help many of our members ward off bad business developments. This can involve anything, from late payments and commercial collapses to the unpredictable English weather. Our debt recovery services free up our members’ cash flow, while our credit management products protect their business from any further hurt. It’s always best to be prepared when you are a business owner, particularly when you trade in the UK.