SMEs Growth Fear Can Be Placated By Credit Managers

9th April 2018.

Weak growth has topped Brexit uncertainty as Britain businesses’ biggest fear for the first time since the referendum.

Business owners are worrying less about building trade relationships beyond the border and instead their concerns have become far more domestic. According to a quarterly survey of finance directors by the accountants Deloitte, business confidence has drastically improved since Prime Minister, Theresa May, made the first transition deal with Brussels last month. The deal, giving companies until the start of 2021 to prepare for life beyond the EU, has improved the general outlook for many business owners. Diminished demand and the widening funding gap within business communities now pose a bigger threat than political uncertainty. As the empty high streets empty the pockets of retailers, and consumers continue to reduce their spending, expansion is necessary to encourage a competitive edge.

Now that we are storming ahead towards the Brexit deadline it is wise that business adapt their operation techniques to the new political climate. According to the research, the businesses with international revenue are driving a bolder business outlook, while domestic businesses are more timid with how they utilise their funds. Nonetheless, whether the business is localised, or has a finger in every pie, their growth should be encouraged. At the Credit Protection Association, our debt recovery services fund growth and fuel aspiration.

Deloitte, who conducted the research, said: “For the first time since the EU referendum, Brexit is not the biggest risk finance directors say their businesses face.” Rating risks on a scale of 0 to 100, weak demand scored 57 as the effects of Brexit dropped to 56.

Rising interest rates were a major concern for finance managers, the survey said, and expectations were set for at least two hikes of 25 basis points in the next year.

Other significant worries for CFOs included UK poor productivity levels and the rising threat of protectionism, as trade tensions between the US and China mount.

While tough economic conditions had dampened risk appetites, 20 percent of CFOs claimed they were more optimistic about their company’s future prospects than they were three months ago.

Anxiety over high business costs and household budgets has displaced Brexit uncertainty, business owners are more preoccupied with expensive equipment, and gaining the competitive edge over the domestic and international competition. Traditional banking is no longer the assumed route for freeing up cash flow, with public trust picked away by each new banking scandal. Instead, owners have looked to alternative options for funding, such as crowdsourcing, peer-to-peer lending, and even credit management.

Here at the Credit Protection Association, we are not a credit management or a debt recovery company; we are both. While your company dusts off the remains of Brexit uncertainty, our debt recovery skills will free up cash flow, chase down unpaid invoices, and give your business the financial freedom to expand. This is at the same time as our credit management products ensure improve your credit rating, and keep late payers at bay in the future.