Posts Tagged ‘company insolvencies’

Business Confidence on the Rise; Just Cashflow Supports Start Ups; and Company Insolvencies

Posted on: April 18th, 2021 by blsuser1 No Comments Tags: , , , , , , , , , , , ,
Posted in Business Finance Bulletin

We open our latest Business Finance Bulletin with the good news that business confidence levels are on the up. The latest Business Barometer report from Hitachi Capital Business Finance reveals that an increasing number of business owners are predicting improved months ahead.

Cashflow can be tight for many businesses, but particularly for start ups. Just Cashflow, the short term finance lender, has announced that alongside their new Business Account, qualifying start ups can now access their Revolving Credit Facility.

To wrap up this Bulletin, we review the latest company insolvency figures which highlight that businesses potentially in trouble continue to be protected by the various government support schemes.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Google, Spotify, Stitcher or itunes channel.

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Business Finance Bulletin · Business Confidence on the Rise; Just Cashflow Supports Start Ups; and Company Insolvencies

You can read the transcript of this Bulletin below…

Business confidence is starting to return; the short-term lender Just cashflow extends supports to startups; and company insolvencies still remain low. All of this in the latest Business Finance Bulletin.

Business Finance Confidence

Let’s opened this bulletin with some good news. Hitachi Capital Business Finance, as part of their quarterly Business Barometer series, have spoken to approximately 1,300 small business owners and the resounding message is that confidence is beginning to return to the marketplace.
Let’s have a look at those businesses who say that they are predicting growth.

Well, three months ago, 26% of businesses said that they were predicting growth for their business.

Forward three months to today, that figure now stands at 36% of business owners saying that they are planning growth over the coming months. That’s a quite a big increase and that’s a big vote of confidence for the UK economy.

Let’s look at the flip side of businesses who were fearing collapse. Well, 12 months ago, the survey found that 29% of small business owners said that they were fearful that their businesses would not survive.

Now, 12 months later, that figure stands at just 7%. That’s a significant fall and just shows how much confidence is now starting to come back into the market place. But of course, it’s not all plain sailing.

I just want to make you aware of one key thing to look out for and that is growth brings its own problems, particularly in terms of cashflow. When you start growing again, particularly if you’re growing rapidly, there’s a big demand on your cash. You need to buy in stock. You need perhaps to fund the growing debtor book, all of this needs cash.

So do watch that and make sure that you are forecasting your cash flow requirements ahead to make sure that you don’t run out of funds, but overall, a really good vote of confidence for the UK economy.

Just Cashflow Supports Start Ups

Are you planning to start up a new business or you have recently started one? I’m sure you’ll agree that the one thing that can hold you back is cash or more particularly cashflow.

Poor cashflow can be a killer for any business, but for startups in particular it can be very challenging.

The short-term finance provider Just Cashflow has announced, it is now going to support qualifying startups by giving them access to their Revolving Credit Facility, which is a facility up to the amount of £10,000. This sits alongside their newly launched business account which is available via a mobile phone or a desktop app. And it does all of the things that a traditional bank account will do. You can make payments online, both in and out. You have a master debit card as well. It integrates with various software accounting packages.

So it really is a good alternative to your main high street banks and particularly of interest of course to startups, where you may be able to access this Revolving Credit Facility up to £10,000. This facility acts essentially like an overdraft limit where often times when you need to make payments out, but you haven’t got the cash in from your clients yet; it acts like a bridge between cash in and cash out a really useful facility for startups.

If you want to know more about the Revolving Credit Facility and also the new business account, just go along to the just cashflow website, which is www.just-cashflow.com. A great new service by Just Cashflow and good to see that people are out there supporting new start ups.

Company Insolvencies

Let’s take our usual monthly look at company insolvency figures. That’s a bit of a depressing topic, of course, but it’s really important that you watch this, particularly if you provide credit to your customers, by giving them 30, 60, 90 days before paying you. You really need to watch the trends going out there to make sure you don’t get caught out.

The figures as I’ve reported in previous bulletins continue to be very low, which is puzzling compared to where UK economy is at the moment in terms of the stresses out there. The latest figures have been released by the Insolvency Service for March, 2021. And in that month, they were 992 firms that went into some form of insolvency arrangement. Now compared to March, 2020, that is down 20%. And that’s the puzzle. You’ve got lots of stresses in the economy, and yet a lower number of businesses are entering into insolvency compared to March, 2020.

If you wind it back a further 12 months to March, 2019, this figure is down a further 37%. So again, a very large drop in the number of businesses going into insolvency.

But of course, the reason behind this is the level of government support, via bounce backs and the CBILs loans that were given; the furlough or the various grants. But we know all of that is now coming to an end or has come to an end. The distresses will now start to come through.

The other thing of course is the perils that come with growth. And I mentioned in the first segment, you’ve got to watch out when you grow your businesses; growth brings an increased demand for cash. And if you can’t access that, then you may get into trouble. So if you are providing credit, just keep an eye on those firms, making sure that they are financially sound.

Also if you are one of the businesses suffering financially, make sure that you take the appropriate advice. Go speak to your financial advisor, your accountant, or seek out a licensed insolvency practitioner in order to make sure that you seek out the correct advice.

Close

That’s it for this Bulletin. As ever, I hope you liked it and if you did, please, don’t forget to give it a like, a share and of course, subscribe to this channel.

So that’s it and I look forward to being with you next time In the meantime, have a profitable, successful and safe week.

Barclays and Marketinvoice, Company Insolvencies, and Business Borrowing – BFB 226

Posted on: August 4th, 2018 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In recent Bulletins, we have shared news of various collaborations between finance providers. The latest is an announcement from Barclays Bank of a tie-up with online Invoice Discounting firm MarketInvoice. This is another example of Old World meets New World.

The most recent statistics to Quarter 2 2018 on company insolvencies has been released by the Insolvency Service. Not surprisingly, but not of any less concern, is the news that insolvencies are on the rise. What impact will the latest increase in Interest Rates have on those businesses already struggling?

To close this Bulletin, our monthly look at borrowing levels among small business. Once again, from the latest Bank of England and UK Finance figures, business owners still appear to be reluctant to borrow and instead are busy hoarding cash.

If you would prefer to listen to the podcast version you can click below or download to listen to later via our Soundcloud, Stitcher or itunes channel.

Business Finance Bulletin Epsd 75: Small Business Enterprise Bill, Late Payment, Crowdfunding Tips & Oaknorth Bank

Posted on: May 22nd, 2015 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In the latest Business Finance Bulletin episode Business Loan Services’ Rob Warlow looks at proposals from the government as part of a new Enterprise Bill to reduce red tape and tackle late payment.

The issue of late payment and how it damages businesses is the focus of a new survey from the insolvency industry trade body R3 which reveals the impact late payment has on potential insolvencies.

Rob also looks at the collaboration between Metro Bank and peer-to-peer lender Zopa which is the first of its kind. Could we see more of this?

Oaknorth is the latest new bank on the block which has just recently launched. Rob takes a look at how it is going to support UK small businesses.

In the Business Finance Tip of the Week Rob chats with angel investor and business speaker Steve Houghton-Burnett and he shares three tips on how to ensure success in a equity crowdfunding pitch.

If you wish to listen to the podcast version of this week’s Business Finance Bulletin click below or download to your phone below or via our itunes channel.

Business Finance Bulletin Episode 73: Funding Knight & Just-Cashflow, Crowdfunding Surge & Santander Breakthrough

Posted on: May 8th, 2015 by blsuser1 No Comments Tags: , , , , , , , , , , , , , , , ,
Posted in Business Finance Bulletin

In the latest Business Finance Bulletin episode Business Loan Services’ Rob Warlow looks at the news of collaboration between crowdlender Funding Knight and short-term alternative lender Just-Cashflow to assist growing businesses.

Looking at the crowdfunding industry as a whole, Rob looks at statistics from the Peer to Peer Finance Association on finance raised by its members during the first quarter of this year which reveal a continued growth surge.

Rob also looks at evidence of a steady improvement in the economy with news that the overall number of company insolvencies is on the way down according to official government statistics.

In the Business Finance Tip of the Week Rob chats with Santander’s Paul Brooks, Business Development Director, Wales about the bank’s Breakthrough Programme designed to help growing businesses with a variety of support schemes.

You can also listen to a podcast version of this Bulletin via either itunes or our SoundCloud page or simply listening in below.

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