Business credit management Employment Finance and Legal Government Information Insolvencies

Stronger Cash Flow Could Give Economy Crucial Push

Britain’s economic growth was left unchanged at 0.1 percent in the first quarter, according to official figures. This was far below expectations, with low inflation expected to have encouraged an upturn in economic activity.

While the political climate in Britain is murky, the economic picture is looking a little brighter. Inflation has faded, and so has the possibility of an interest hike from the Bank of England. The accelerated wage growth has also boosted household budgets, hopefully improving consumer confidence in the long run. These positive developments have yet to make an imprint on the landscape, with the economy simply not growing quick enough.

According to new data from the Office for National Statistics (ONS), economic growth in the first quarter of 2018 was far below expectations, with its pace recorded as record-slow. Despite the larger wage packets, consumers are still not spending, and the ONS reported a mere 0.2 percent rise in household spending within the first three months of the year. This could create concern for retailers, who have suffered from low customer turnout and lower profits.

The health of the economy is directly linked to the prosperity of individual businesses, with strong profits inspiring a stronger overall economic performance. Unfortunately, with the persistent torment of late payment and the reluctance of large businesses to alter payment behaviour, business owners are forced to surrender to insolvency practitioners to save their reputation.

At the Credit Protection Association, our debt recovery and credit management services not only provide our members with extra cash but clean away any residual debt and late payment and improve our members’ finances for the better.

 

ONS head of GDP Rob Kent-Smith said: “Overall, the economy performed poorly in the first quarter with manufacturing growth slowing and weak consumer-facing services.

“While there was some evidence of the poor weather hitting construction and high street shopping, this was offset to an extent by increased energy supply and online sales.”

It did revise its reading of construction output to a fall of 2.7 percent, up from a decline of 3.3 percent.

The services sector grew by 0.3 percent in the first three months of the year. But from the same period a year ago, this part of the economy is weakening.

Ruth Gregory, UK economist at Capital Economics, said: “We still think that the figures are underestimating the true strength of the economy and will be revised up in time.

 

Howard Archer, chief economic adviser to the EY Item Club, said: “While growth in the first quarter was clearly savaged by the Beast from the East, the extent of the slowdown has fuelled strong suspicion that there was a significant underlying loss of momentum in economic activity in addition to the weather impact,” he said.

 

The economy has not moved as quickly as expected. Improved wage growth and fading inflation have not drastically affected the economy, and many sectors are struggling. The bad weather at the start of the year has been suggested as a factor, but economists insist this had a limited impact.

The responsibility ultimately lies with business owners. To jumpstart the economy, British businesses need to do better. Despite the various initiatives launched by the government, late payment lingers and is putting many small business finances at risk. Company Voluntary Arrangements (CVA) have become more popular as a result, with many businesses jumping straight into insolvency proceedings without weighing their options.

There are alternative options, however, with some third parties realising the importance of improving finances, as well as supplying extra cash. At the Credit Protection Association, our credit management products keep our members’ finances protected, with our credit checks and status reports ensuring the permanent absence of bad payers.

We fight to the tooth for our members, particularly those who have encountered late payers and an oversized debt pile. We recently created a new department within our company dedicated to getting our members rightly compensated in accordance with the Late Payment of Commercial Debts (Interest) Act 1998, unlocking hidden cash and potential in our members and their prospects.

The Credit Protection Association is a credit management company established in 1914. If you supply goods or services on credit then we can help you!

 

 

Please call us on 0330 053 9263 to discuss how CPA can help your cashflow.
Alternatively, either email us or use our contact form.

I consent to supplying my personal information that may be used for marketing purposes and agree with the privacy policy.

The Latest Insolvencies to 30 May 2018

Previous Post

Refocus on Business Finances to Sustain Professional Services Boom

Next Post

Ready to speak to an advisor?

For help or advice on credit management, entirely without obligation.
Call us today

0330 053 9263