Key Issues Facing Businesses

KEY ISSUES FACING BUSINESSES

Following a couple of really challenging years now is the time for owners to be addressing the key issues facing their businesses.

For the majority those challenges will be financially orientated. Although these have been somewhat eased by the Government support by way of CBILS  and BBLS these facilities however will now have to be repaid.

Pressure on cashflow will increase with the recently seen surges in energy costs as well as ongoing staffing problems and supply chain disruption, so now is the time for the decision makers to look at their business and focus on the following:

  • What is the level of exposure to supply chains and potentially uncreditworthy customers. While it’s important for any business to be aware of their own financial situation, the health of customers is just as critical.
  • Spread customer risk, low concentrations where possible with credit insurance a serious consideration.
  • Credit check new and existing customers on an ongoing basis.
  • Effective credit management where credit terms are offered, monitor outstanding debtor days and rigorous credit control.
  • Continually reviewing outgoings, the rising cost of gas and electricity will naturally be a prompt for many to review their energy supplier, but it’s important to consider wider costs too.
  • Any savings that can be made on expenditure should be investigated to include finance costs, insurances, rent and rates to name but a few.
  • Consider whether you are currently benefitting from the most suitable funding arrangements available to you.
  • Given the range of external finance options nowadays it’s prudent for businesses to review any facilities they have in place against the wider market, and further to explore any additional solutions that will enable them to keep cash flowing and cope with the challenges outlined above.
  • This forward way of thinking, coupled with some reluctance from the bank to support businesses should lead to looking at other solutions that are available and we at Plummer Parsons are happy to sit down with you and thoroughly investigate what solutions may be of interest to you.

In our role as Accountants, we’re seeing a growing number of businesses come to us with this forward looking mindset. Many are tired of the reactionary approach they’ve been forced to take as a result of the pandemic and are ready to take the initiative by tackling the key issues facing their business head on. They recognise that the right finance facility from a supportive funding partner will provide the foundations that set the company up for the future, post-COVID world, whereas a facility they already have might no longer be the most suitable for them now or moving forward, and instead prove restrictive and burdensome.

2022 won’t signal the end of the challenges created by the pandemic, but it does provide a clear and definite opportunity to look ahead to what we all hope will be a brighter future.

If you would like further assistance then please contact your Partner or Client Manager.