Tough going for SME’s

 

Latest research illustrates that in the UK 50% of start up companies fail to last beyond 5 years. The biggest obstacle that these companies fail to negotiate is the vexed question of securing adequate funding.

When approaching lenders it is vital that the business plan is realistic and clearly defined.

With the marked reluctance of the banks to lend, it becomes imperative that all businesses focus on their areas of exposure – rigorous policing of the outstanding receivables must be a priority and inventory kept at a minimum.



More companies will try and improve their cash-flow by dragging their feet with payments and trying to put more of the burden of carrying stock onto their suppliers.



Those that adopt a passive approach to these issues will find themselves increasingly vulnerable and heading down a slippery slope.