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Bank Holiday Squeeze

With the bank holiday coming up this weekend, SMEs are being squeezed by all the extra time off. The Diamond Jubilee is big news this summer, and means an extra bank holiday for many people across the country. However, this is a big drain on small companies, who will inevitably lose money due to the extra time off. With cash flow and financing problems an issue, taking time off is often not an option, as a recent survey has shown.

A poll conducted by ELAS has shown that of 700 small businesses interviewed, 62% planned to continue working on the day of the Jubilee, June 5th. They plan to continue with business as normal, and plan to take the day out of their staff’s holiday entitlement should they take the day off, of course contract issues allowing.

Significantly, nearly 75% of those interviewed said that they objected to the government putting extra bank holidays in place to celebrate national events, such as the Jubilee. Last year’s Royal Wedding is another example, which cost nearly £6bn in lost economic prodution – a rather horrific figure, especially when we take into account the current state of the economy.

With many SMEs already struggling to make ends meet, the extra days off is not helping matters. While celebrating the Jubilee or the Royal Wedding are not begrudged in themselves, it more comes down to the vast amounts of lost income.

With so many businesses struggling with cash flow, it seems like the extra bank holidays are making the issue worse. While the government is looking to boost the SME sector, the extra time off is nothing but a drain on many SMEs.

If your business needs some extra flexibility when dealing with bank holidays, having adequate cash flow is essential. Invoice financing could be a big help, helping you to release funding from invoices within 24 hours. This can be especially valuable if your business is being squeezed by coping with extra days off.

Select Factoring have a whole range of solutions for cash flow, from factoring to invoice discounting, suitable for a whole range of different business sectors.

 

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