London Firms Refocus on Cash Flow To Offset Low Self-Esteem

1st May 2018

London firms lost confidence during April as optimism around the prospects for the British economy sagged, according to a poll to be published today.

The confidence felt by businesses in the capital has fallen by 12 points during April, according to new data from Lloyds Bank. Economic optimism and optimism in their own prospects after Brexit have slumped in the new year, with many firms struggling to garner enthusiasm for a landscape littered with company closures and prolonged political uncertainty.

This coincides with the recent pessimistic outlook, fueled by gloomy forecasts of low expansion and spluttering consumer confidence. Inflationary pressure has eased and wages are finally growing, but households are hesitant to change their behaviour. Spending on the high street is still slow and retailers are paying the price.

Until consumer behaviour changes or the Prime Minister finalises agreements with Brussels, the business landscape is going to remain muddled. Businesses should, therefore, help themselves, and focus on how to improve their own cash flow and their overall prospects for the year ahead. At the Credit Protection Association, our debt recovery services free up cash flow for our members, providing the monetary encouragement to inspire expansion and business growth. Sustaining the competitive edge of the Capital is vital if we are to keep pace with rival economies, so our businesses should strive to overcome any soul sentiment.

Paul Evans, regional director for London at Lloyds Bank Commercial Banking, added a note of optimism, reflecting a more upbeat outlook in London than the rest of the UK. He said: “There are signs that economic concerns are beginning to grow, but companies remain keen to take on more staff – and this commitment is still intact.”

Confidence was highest among north-west businesses at 49 percent, while those in the south-west were the least confident, with an overall score of 20 percent, 12 points below the national average.

The business landscape is muddled, and as a result, businesses are uncomfortable with their place within it. Expansion levels are down, and confidence in prospects are dwindling. As a business owner, there are many routes that lead to financial confidence. A renewed focus on cash flow is essential, this means ensuring all customers are paying on time and that customers are leaving behind residual debt.

Of course, many business owners achieve this alone, but it is more time and cost-efficient to approach a third party. At the Credit Protection Association, our debt recovery services chase down unpaid invoices and ensure our members are repaid to the full. Our credit management products then conduct preventative measures, such as credit checks on customers and suppliers. We will also utilise our company directory to verify the financial status of all firms our members do business with.

Our services not only provide our members with some extra cash but also restore some confidence and self-assuredness that many businesses lost after the Brexit referendum.