UK Expansion Weak, but Credit Managers Offer Assistance
23rd April 2018.
Britain’s economy remains stuck in the slow lane despite the surge in global growth, official figures are set to show this week.
With Brexit uncertainty lingering over the country and consumers continuing to reign in their spending, businesses are hesitating to rush into any expansion plans. The shaky economic and political climate is a risky foundation for business growth, particularly when the next economic downturn or failed deal with Brussels could lead to further company closures. New city forecasts have pointed to a 0.3 percent expansion in the first quarter, the weakest pace of growth in a year. Furthermore, various groups of economists believe the repercussions of last month’s cold weather could bring the figure down further.
If the UK is to keep pace with its overseas rivals, it cannot let its competitive edge drop. Inflation is dropping, wage growth is finally showing signs of growth, and the Prime Minister is making slow but strong progress with Brussels. The availability of consumer credit has fallen in recent months, as banks become less willing to approve bank loans for start-up and small businesses. As bank scandals continue to resurface, and the Bank of England repeatedly threatens an interest rate increase, businesses should look to alternative platforms for financing growth.
Traditional concepts are no longer the assumed route, with alternative finance platforms like crowdfunding, becoming more popular. These are not without risk, with some ‘alternatives’ demanding more from the business owner than they are able to give. Credit managers offer something different; they protect and improve business finances, rather than inflicting damage. At the Credit Protection Association, our debt recovery services chase down unpaid invoices and conduct thorough credit checks, that can give firms a new lease of life.
Disappointing growth figures this coming Friday could be the final nail in the coffin for a May rate rise, which early last week was seen as a near certainty, but is now considered an even-money bet by investors.
“The GDP number is crucial for the Bank of England,” said Robert Wood, chief UK economist at Bank of America Merrill Lynch. “It would be remarkable to hike rates while growth is slowing and inflation is falling faster than expected.”
The influential EY Item Club has downgraded its GDP growth forecast for the UK this year to 1.6% because of last month’s snow. “The economy is chugging along at a fairly steady but uninspiring rate,” said Howard Archer, chief economic adviser to the Item Club.
“Inflation, which impacted consumer spending last year, continues to drop and we expect a tight jobs market to deliver some uptick in pay growth. However, these factors may be offset by rising interest rates, a recovery in sterling’s value and still appreciable Brexit uncertainties bringing new headwinds over the year.”
The UK economy is improving. It is a slow process, but a post-Brexit future is looking less bleak by the day. Improving cash flow is an easy and effective method of boosting these flailing expansion levels in the first quarter of the year.
At the Credit Protection Association, our debt recovery services chase down unpaid invoices and afford our members with a renewed financial freedom to pursue new expansion projects. Our members have used the extra cash to afford new technology, equipment, or even acquire new services and new staff. If Britain is to make it to the Brexit deadline next year, we must keep up with rival economies by the boldness and innovative attitude of our businesses.
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!
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