The current climate is not looking favourable towards businesses in the UK. With reports that recent changes are going to impact the future of companies nationwide, what can you do to ensure your business is not included in those predicted to fail?
On Thursday 2 November, the UK base interest rate increased for the first time in ten years. It was set at 0.25% in July 2007. It has now been increased to 0.5%. It is estimated to rise twice more in the next three years.
The Independent recently reported that this increase has the potential to impact businesses all over the UK. Prior to the increase, 448,011 of businesses have been suffering financial distress and 250,000 businesses do not actually have enough capital to maintain profitability. Cheap credit and cheap labour are essential to keep these businesses afloat and it is predicted that this will be drying up due to the recent, and future, interest rate changes.
For businesses to remain profitable and soar in this period of uncertainty, surely the most logical starting place is to ensure that all outstanding invoices are paid?
It is claimed that two thirds of all UK businesses have written off bad debt during their lifetime. If you are not already aware, “bad debt” is money owed to businesses that are considered uncollectable; usually because the debtor is not forthcoming in paying up. The financial year 2015-2016 saw small businesses writing off a massive total of £5.8 billion in the UK. A deficit of that amount can seriously impact the financial stability of a business.
Have you written of debt in the last six years?
Would you like the “bad debt” turned into income?
If your answers to the above questions are “yes”, we can help. Griffin Law offer a free, audit that will identify all bad debts that we can turn into good. This is a no obligation service, so you have absolutely nothing to lose. Call Griffin Law now on 01732 525 923 to arrange your bad debt audit.