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SMEs

Pay Attention to a Company’s Cash Flow Before Making a Decision

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
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Do You Need to Pay HMRC First if You’re Insolvent?

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
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Good News and Bad News for International Business

During the pandemic, SMEs worldwide assumed this was as bad as it got, and by this time things would have improved. In fact, 2023 seems to be even worse than the height of lockdown — in fact, the worst the economy has been since 2008. Strangely, though, this doesn’t appear to be causing gloom among business owners. A recent survey suggested that the vast majority of SMEs in the international business community are op
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Buy Now Pay Later — Flexibility or Debt Trap?

Buy Now Pay Later (BNPL) has grown massively over recent years, with options to defer payment being offered for everything from clothing to groceries. Used responsibly, this can be an effective method of obtaining credit to give flexibility in budgeting. However, it can also lead consumers into spiralling debt. The government promised to introduce regulation for the sector, but recent reports suggest they’re consider
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Are Supply-Chain Delays Killing Your Business?

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
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Business Insolvencies Soared in May

There have been many signs recently that the economy is in trouble, most obviously the most recent announcement of interest rate rises. Another troubling sign, though, has been given less publicity — a sharp rise in business insolvencies in May. What’s behind this, and what does it mean for you as a business owner? The Rise in the Figures Business insolvency figures have been rising for a while, but it’s been possibl
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FCA Ban for Debt Packagers Charging Referral Fees

In these times of financial stress, large numbers of people, both consumers and small business owners, are seeking debt advice. A good deal of the advice out there is excellent, but there are exceptions. There’s been concern expressed for some time about the referral fees charged by debt packaging companies and whether this creates bad advice. It seems that the Financial Conduct Authority (FCA) share this concern, an
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SMEs Are Targeting Growth in 2023 — But There Are Challenges

With rampant inflation and a cost-of-living crisis in progress, it would be easy to assume that businesses would be consolidating and cutting costs. While some may be, though, the attitude where SMEs are concerned looks surprisingly optimistic. There are challenges, however. So, should you go for growth or concentrate on playing safe? SMEs Planning for Investment A recent survey by retail bank Aldermore has revealed
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Are We Producing a Financially Illiterate Generation?

While the current economic problems in the UK can’t really be laid at the feet of consumers, there’s no doubt that widespread poor financial management isn’t helping matters. This ranges from naivety in investment to a general “have it now, pay tomorrow” culture that’s fuelling debt. A recent survey suggests that this isn’t set to improve. The study, by Compare the Market and MyBnk, found that only 41% of young adult
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Administrations at Their Highest Since Before the Pandemic

During the Covid pandemic, surprisingly few companies went into administration. This was because a raft of government support measures, such as furlough and bounce-back loans, allowed struggling companies to survive. But this is over, now, and it’s showing, with new issues adding to the effect. The number of companies entering administration in March 2023 was the highest for three years. The Covid Effect on Administr
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