New small and medium-sized businesses are on the up in the UK. Since recovering from recession in 2015, the UK has seen more SME startups being formed, as financial prospects have improved for business start-ups.
However, despite this apparent upturn for UK business, reports show that more firms are struggling financially, with corporate stress levels chronically increasing.
Recent political uncertainty and question marks surrounding Brexit have prompted unease within the business world, and made small to medium business owners less confident about the future; the instability of the pound on the world market has also caused businesses to struggle.
As a small to medium business owner, your time is precious; it is important for all your resources to be aligned in the best interest of the business and its prosperity. This means outsourcing and seeking quality financial products to reduce stress and improve business security. Internal financial management may seem an attractive prospect, but in an increasingly competitive market, the reality is that this is an inefficient use of resources; finance professionals are able to save you and your business time, money and stress; the following financial management techniques can help you to focus on the successful management of the day-to-day operations of your business.
Book-keeping and Accountancy
Whilst the importance of maintaining good book-keeping practices and employing a quality accountant can often be underestimated, they form the cornerstone to managing the rest of your business’ finances. Gone are the days of keeping receipts and invoices in a plastic carrier bag.
If a debtor goes bust, it is often extremely difficult and stressful to recapture any monies owed. This can lead to cash flow problems, especially for SMEs. Credit Protection can be a viable solution, and offer business owners further peace of mind.
Failing to protecting your business from unforeseen issues, such as theftor an employee accident in the workplace can leave a business in financial ruin. Ensuring you employ good operating practices and have the correct cover for your workplace is paramount to ensure your business can continue in the midst of adversity.
Trade Finance (Purchase Order Financing)
Upfront payments can present real barriers to business growth, and stop businesses achieving their potential. As customer orders come in, you may in turn need to order goods from a supplier. If the supplier requires payment upfront, you may be unable to fulfil that order. Trade Finance offers a viable solution by covering the cost of Purchase Orders, and enabling future growth.
For any business, investing in assets such as machinery can mean a substantial financial outlay, which may be unaffordable. Asset Finance can help businesses, including startups to attain the assets they need to grow their business.