Company News:

Beanstalk secures business sale for search engine marketing company Netcallidus Limited

Beanstalk secures £3m growth investment for innovative nanotechnology company, Mantis Deposition

"We are exceptionally pleased with the competitive divestiture process Beanstalk Management ran for us. They successfully captured the essence of our proposition, negotiated a compelling deal and drove the entire process with tenacity. It would have been impossible to achieve the same result without them"

Netcallidus - May 2010















Late payments cause cash flow concerns for SMEs

17 March 2009

In a poll carried out by Lloyds TSB Commercial amongst 3,400 UK based companies, 29 percent of the participants reported having experienced cash flow problems in the last trimester of 2008, mostly due to the late payment of invoices for goods provided or services rendered. The study focused on small and medium size companies, with a turnover no more than £15 million. These figures show an 8 percent increase in the number of companies experiencing such difficulties compared to the same period of the previous year, but still way below the figures recorded during the 1990s recession when 56 percent of SMEs found themselves in a similar situation.

The poll also identifies the main sectors that are thought will be more affected by late payments as being the construction sector (83 percent) and the wholesale and distribution sector (80 percent) as opposed to activity in the catering and leisure as well as the hostelry industry, for which the situation seems to be more positive, only 32 percent of those questioned have suffered from cash flow tightening due to late payments.

In order to protect themselves more and more companies seek financing through services such as invoice discounting or factoring, and try to protect themselves against client insolvencies through the use of debtor insurance services. As no improvement of the situation is foreseen in the near future, firms are encouraged to identify all possible threats in order to efficiently manage and strengthen their cash flow and take the necessary steps to protect themselves against non-payment.




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