Research conducted by RBS Invoice Finance found that on average small businesses spend 130 hours chasing late payments by creditors and have to wait an additional 30 days over and above the agreed terms of their invoice before receiving or recovering payment.
For many small business owners and managers these findings will not come as a surprise as they find themselves having to manage increasingly fragile cashflows which threaten their business’ stability on a regular basis. According to the Association of Business Recovery Professionals (R3) up to a staggering 30% of businesses rely on their maximum overdraft limit on a regular basis.
According to leading industry commentators at Ernst & Young, so called ‘Zombie businesses’ – unviable businesses being artificially kept afloat through various government initiatives, such as HMRC’s Time To Pay Scheme – are playing a significant role in prolonging the current economic downturn and exacerbating its effects. It is argued such businesses deplete the pool of available credit making it more difficult for viable businesses to secure lines of credit to fund investment and growth.
Effective management of one’s cashflow can be the difference between survival and insolvency. Holmes & Hills Solicitors offer a number of cost-effective debt recovery services which can quickly and efficiently improve a company’s cashflow.
Holmes & Hills has a team of debt recovery solicitors providing debt recovery services to businesses across the South East and East Anglia.
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