Top ten cash flow killers
CASHFLOW experts have revealed the top ten ‘cash flow killers’ for small and medium sized businesses.
cashflowfacility.co.uk asked company directors from all over the UK to highlight where the biggest cashflow problems emerge from within their business.
The top ten ‘cashflow killers’ according to cashflowfacility.co.uk are:
1) Late payment by customers
2) Banks freezing overdrafts
3) Unexpected tax bills
4) New machinery or IT equipment
5) Delayed insurance claim payments
6) Slow funding decisions by banks
7) Slow invoicing
8) Contracted bonus payments to staff or suppliers
9) Redundancy costs
10) Legal bills
Chris Baguley, director of cashflowfacility.co.uk said:
“Too many companies are going to the wall because they can’t see how to address these common threats to their business. The economic environment is turbulent and these cash flow restrictions are preventing viable businesses from recovering.
“For companies that have a strong reserve of equity in either their business premises or another property, short term funding secured against commercial or residential investment property remains one of the quickest and simplest ways to draw down capital for a variety of purposes.
“Provided that a business is basically in good health, a short term injection of loan capital can often be sufficient to allow it to continue operating without undue disruption until income streams have stabilised, as well as help refocus the business plan to longer term growth rather than survival.”
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