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The last quarter of 2023 saw the UK going formally into recession, and that’s bound to affect the mood among small businesses. It’s not a coincidence that a survey by the Federation of Small Businesses (FSB) found that businesses felt more pessimistic during Q4 than Q3. Lower Levels of Optimism Among Small Businesses The FSB’s Small Business Index for the final quarter of 2023 found a reduction in s

Recent economic news seems to have been an improvement on last year, with inflation and interest rates holding steady. Two recent surveys by Novuna Business Finance, however, show that small business owners are still having sleepless nights about their position — and many fear that they may have to close within the year. Concerns Affecting Small Businesses 75% of small business owners have said that worries about the

After a year that’s been bad for both businesses and consumers, it might be assumed that business forecasts are going to be negative. However, a survey of London businesses late in 2023, gives mixed signals. Most expect difficult times in the first half of 2024 — but a surprisingly large number also expect to increase their profits this year. Fears for Economic Activity in 2024 In a survey of 500 London-based b

The Federation of Small Businesses reported that, for the 4th quarter of 2023, 40% of small businesses reported a fall in revenue, and confidence had also plummeted. Which makes it more surprising that, according to research by three separate organisations, optimism is high among small businesses for 2024. Expectations for Growth in Turnover In a recent poll by lender Iwoca, 47% of small businesses were expecting an

An IVA (individual voluntary agreement) can be an invaluable resource for any individual person facing mounting debt. It offers the chance to protect yourself against action by creditors, and to structure repayments in an affordable way. However, like any financial product, there’s the potential for abuse. The Insolvency Service has announced that it’s investigating whether IVAs are being mis-sold. What i

Loans can be essential for the growth of small businesses, and as long as they’re managed carefully, they’re entirely positive. Investing for growth is a way that SMEs can lead the economy out of its current stagnation — but there’s a problem. Banks are increasingly asking directors of small businesses to provide personal guarantees for loans, often putting their homes on the line. The Federation of

In any time of economic uncertainty, there’s likely to be an increase in companies going into liquidation. The recent collapse of Wilko has focused our attention on this issue, and no doubt many company directors are feeling nervous. The position of a director of an insolvent company can be problematic in certain circumstances. In general, however, there shouldn’t be too much to worry about. Insolvency fo

There are various reasons why you might need to examine another company’s books. You should certainly do so if you’re considering investing in the business, but you may also want to get a better idea of their finances before offering credit. But what should you be looking for? Turnover? Profit? Or is it better to look at cash flow? Why Is Cash Flow Important? Profit and turnover each give only a very partial picture

If a company enters into any form of insolvency, whether it’s a company voluntary arrangement, a pre-pack administration or a restructuring plan, it’s likely that one of the major creditors will be HMRC. It’s often believed that any taxes owed have to be paid first, before any other debts have to be considered. However, the situation is far from simple. Some recent cases have supported HMRC’s claims, while others hav

Business owners generally focus most on the sales that bring in the income, rather than on their suppliers. That’s understandable, but it can also be short sighted. Recent research by retail bank Aldermore has found that well over half of SMEs have suffered supply-chain problems in the past year — and this has cost a total of £1.9 billion. Why Are There Supply Chain Delays? Disruptions to supply chains have been goin