There’s been no end to the bad press surrounding the business sector in recent times, but there is some good news. So far, 2012 has shown fewer instances of company failures have significantly fallen compared to the same period in 2010.
Company failure rates are nearly 20% lower than this time two years ago, which looks like good progress in the UK business sector. The number of insolvencies is also down compared to this time last year by nearly 4%. The number of insolvencies in the manufacturing sector has also slightly decreased, following a peak at the end of last year.
However, we’re still in the midst of a double dip recession, and with UK GDP looking like it’s going to stagnate until at least the end of the year, it’s essential that small businesses does everything they can to avoid getting into trouble. Looking into alternative finance options is essential if you need to boost your turnover, cash flow and ultimately increase profit and sales.
For example, invoice finance is one option for any business which issues invoices on a 30, 60 or 90 day basis. If your business is being dragged down late payments and loss of cash flow, then factoring and invoice discounting are options that are definitely worth exploring. They can release the capital tied up in unpaid debts in order to keep your business working on a day to day basis, as well as giving some extra room for growth and expansion.
While the UK economy isn’t in the best shape, there’s no reason why businesses shouldn’t still take into account all their options – especially when looking for external finance. Invoice finance might be able to help if your business is in need.