Business Finance News From United Kapital

Businesses In For A Long, Hard Slog

Friday 21st of October 2011

Latest results from BCC's study revealed that businesses have pared back their investment plans as their sales numbers have declined since the recession. The BCC said that these results were "disappointing and worrying" for small and medium sized businesses.

David Kern, Chief Economist at the BCC commented, "We wouldn't want these figures to be interpreted as foreshadowing an inevitable recession, but I think we are in for a hard slog for a fairly long period"

The results indicated that since July domestic sales have deteriorated as businesses found their order books becoming lighter and lighter. Businesses have not been investing in equipment or staff in the time as cash flow proves a problem too. Cash flow problems have in fact been an issue for both small and larger businesses alike.

The unusually hot weather at the end of September lifted food sales as more people had BBQs and family parties, but clothes sales plummeted as the winter ranges which were in store were not selling.

As inflation erodes the public's wages, it is difficult to see whether the results of this month and next will be any different, and also how Christmas might impact on the public's spending.

For businesses that are struggling with cash flow, there are alternative types of lending which might help you through the "long, hard slog" which the BCC speak of.

For example, our merchant cash advance could help companies to get back on their feet and achieve business goals by advancing a sum of money which is repaid through a fixed and pre agreed percentage of debit and credit card machine transactions.

This encourages a healthier, more flexible way of lending and ensures you can always afford the repayments since the percentage is taken directly when the customer pays for the sale. The amount could be anything up to £150,000 - enough to pay bills, undertake a refurbishment or hire new staff.

This is helpful for many SMEs, who may have been turned down credit elsewhere.

SMEs might also want to look into investor opportunities as a means of succeeding through the wake of the recession.