The Department of Business Innovation and Skills said that 95% of invoices sent to the UK government are now being paid within 10 days. This is a result of government action taken last year to assist small businesses with cash flow through the economic downturn.
Local government is not doing as well, with only 42% of invoices being paid within 10 days, the average payment period being 18 days.
However, only 22 of the FTSE 100 companies have committed to the government’s Prompt Payment Code, which was introduced a year ago. The cost to UK businesses in 2009 is estimated at £189 million, in interest on late paying invoices.
On average, private companies paid 21 days after the due date and large companies were the slowest payers.
So while companies are paying slightly faster than they have been, the paying cycle still reflects reluctance to part with the cash.
The Forum of Private Business said that late payments were hurting suppliers and the worst hit was smaller firms. They appealed to large companies to speed up the payment of invoices to assist the economy to recover and to relieve the rate of unemployment.
Small UK businesses have experienced a very trying time and they appreciate the prospects that we send to them, without cost, from our Local Search facility in our UK Business Directory. The vast majority of the 1.6 million business listed in our directory are small firms.
Monte Huebsch, CEO
Sunday, November 29, 2009
The UK government is paying companies who supply them quickly but large, private sector companies are still paying too slowly.
Monday, November 23, 2009
The increase in receivables finance indicates an improvement in UK small business results.
The Institute for Factors and Discounters reports that receivables finance increased by 2% in the September quarter, compared to the previous quarter.
Receivables finance is financing provided to small businesses so that payment is received promptly, rather than having to wait for an extended period to be paid by the companies they are supplying.
However, while the September quarter result was an improvement, it was still down 6.8% on the 2008 September quarter.
Across 6,000 businesses, the average period for debt payment was 42.7 days in the last quarter, a one day improvement on the June quarter, and the June quarter was a one day improvement on the quarter before that.
With discounting, Institute member firms buy the small company’s debt but leave them with the job of collecting the debt. Factoring is where Institute member firms buy the debt and accept some of the responsibility for collecting the debt.
So this is an indicator that small businesses are starting to see an improvement in sales results. Because receivables finance is primarily a service for smaller firms, it is a good measurement of the state of the sales activity of smaller companies.
This is important since, according to UK Trade & industry, small UK businesses provide 59.2% of private sector employment and 51.2% of total private sector revenue.
We assist small UK firms by providing them with qualified prospects at no cost to them from our Local Search facility in our Business Directory. There are 1.6 million business listed in our directory, most of which are small companies.
Monte Huebsch, CEO
Receivables finance is financing provided to small businesses so that payment is received promptly, rather than having to wait for an extended period to be paid by the companies they are supplying.
However, while the September quarter result was an improvement, it was still down 6.8% on the 2008 September quarter.
Across 6,000 businesses, the average period for debt payment was 42.7 days in the last quarter, a one day improvement on the June quarter, and the June quarter was a one day improvement on the quarter before that.
With discounting, Institute member firms buy the small company’s debt but leave them with the job of collecting the debt. Factoring is where Institute member firms buy the debt and accept some of the responsibility for collecting the debt.
So this is an indicator that small businesses are starting to see an improvement in sales results. Because receivables finance is primarily a service for smaller firms, it is a good measurement of the state of the sales activity of smaller companies.
This is important since, according to UK Trade & industry, small UK businesses provide 59.2% of private sector employment and 51.2% of total private sector revenue.
We assist small UK firms by providing them with qualified prospects at no cost to them from our Local Search facility in our Business Directory. There are 1.6 million business listed in our directory, most of which are small companies.
Monte Huebsch, CEO
Larger UK businesses are not borrowing the approved and available funds, while small firms can’t get loans.
The Bank of England reports that lending to UK companies reduced by £4.6 billion in September, which made the one year growth the lowest since 1999, when records started being kept.
While some small businesses said they had problems accessing loan funds, lenders said that borrowers were very wary about taking on debt and that the funds the banks had available were not being accessed.
The Royal Bank of Scotland, now government controlled, said they had £27 billion in business loans that were approved and that had not been taken up. Lloyds Banking Group Plc, which is now 43% government owned, said they also had tens of billions of approved loans that are not being used.
HSBC Holdings Plc said that they had £1 billion in additional loan funds available for businesses and that only £600 million had been borrowed. They also said that debt repayments had accelerated.
The government’s contribution of £58 billion in bail out funds to the Royal Bank of Scotland and Lloyds Banking Group Plc came with a promise that they would increase lending by £25 billion and £28 respectively over two years.
The Bank of England reports that consumers in the UK currently have £1.46 trillion in debt, more than the country’s gross domestic product, however consumer borrowing fell by £262 in September, the third month in a row of falling consumer debt.
At the same time, a British Chamber of Commerce survey in November found that a third of small UK firms, that is with fewer than 50 staff, found it more difficult to get loans from banks since June.
So there is a situation where larger firms have substantial loan funds available to them, which are not being taken up but many small companies are still not able to borrow what they require.
We assist small UK firms by sending them prospects at no cost from our Local Search facility in our UK Business Directory. Most of the 1.6 million UK companies listed in our directory are small businesses.
Monte Huebsch, CEO
While some small businesses said they had problems accessing loan funds, lenders said that borrowers were very wary about taking on debt and that the funds the banks had available were not being accessed.
The Royal Bank of Scotland, now government controlled, said they had £27 billion in business loans that were approved and that had not been taken up. Lloyds Banking Group Plc, which is now 43% government owned, said they also had tens of billions of approved loans that are not being used.
HSBC Holdings Plc said that they had £1 billion in additional loan funds available for businesses and that only £600 million had been borrowed. They also said that debt repayments had accelerated.
The government’s contribution of £58 billion in bail out funds to the Royal Bank of Scotland and Lloyds Banking Group Plc came with a promise that they would increase lending by £25 billion and £28 respectively over two years.
The Bank of England reports that consumers in the UK currently have £1.46 trillion in debt, more than the country’s gross domestic product, however consumer borrowing fell by £262 in September, the third month in a row of falling consumer debt.
At the same time, a British Chamber of Commerce survey in November found that a third of small UK firms, that is with fewer than 50 staff, found it more difficult to get loans from banks since June.
So there is a situation where larger firms have substantial loan funds available to them, which are not being taken up but many small companies are still not able to borrow what they require.
We assist small UK firms by sending them prospects at no cost from our Local Search facility in our UK Business Directory. Most of the 1.6 million UK companies listed in our directory are small businesses.
Monte Huebsch, CEO
Wednesday, November 4, 2009
One tenth of UK retail banking business is for sale.
The UK Treasury announced that the European Commission has approved the break up and sale of some of the assets of the two major state owned banks.
The Treasury will provide an additional £25 billion to the Royal Bank of Scotland and almost £6 billion more to Lloyds. The arrangement will make the Royal Bank of Scotland more controlled by the government, with the percentage of public ownership increasing from 70% to 84%.
Lloyds will be no more accountable to the government, which owns 43% of the bank.
In return for government support, the Royal Bank of Scotland will sell 318 branches, 14% of its UK network and Lloyds will sell 600 branches, about 20% of its UK network.
The Royal Bank of Scotland is offering for sale businesses with 1.7 million clients, including 230,000 small business clients and £20 billion in assets. It is also required to sell its insurance businesses, plus its international merchant services business which processes debit and credit card payments, and its interest in its commodity trading business.
Lloyds is selling almost 5% of UK current personal accounts and about 19% of its mortgage assets.
Treasury said that the buyers must be small or new businesses to ensure diversity and competition.
As most of the developed world is now out of recession, and the UK is expected to have positive growth in the next quarter, this restructure will affect the small businesses that are expected to provide new jobs to reduce the current high employment rate.
We’re assisting UK small businesses by sending them prospective customers, at no cost to them, from our Local Search facility in our UK Business Directory. Most of the 1.6 million business listed in our directory are small firms.
Monte Huebsch, CEO
The Treasury will provide an additional £25 billion to the Royal Bank of Scotland and almost £6 billion more to Lloyds. The arrangement will make the Royal Bank of Scotland more controlled by the government, with the percentage of public ownership increasing from 70% to 84%.
Lloyds will be no more accountable to the government, which owns 43% of the bank.
In return for government support, the Royal Bank of Scotland will sell 318 branches, 14% of its UK network and Lloyds will sell 600 branches, about 20% of its UK network.
The Royal Bank of Scotland is offering for sale businesses with 1.7 million clients, including 230,000 small business clients and £20 billion in assets. It is also required to sell its insurance businesses, plus its international merchant services business which processes debit and credit card payments, and its interest in its commodity trading business.
Lloyds is selling almost 5% of UK current personal accounts and about 19% of its mortgage assets.
Treasury said that the buyers must be small or new businesses to ensure diversity and competition.
As most of the developed world is now out of recession, and the UK is expected to have positive growth in the next quarter, this restructure will affect the small businesses that are expected to provide new jobs to reduce the current high employment rate.
We’re assisting UK small businesses by sending them prospective customers, at no cost to them, from our Local Search facility in our UK Business Directory. Most of the 1.6 million business listed in our directory are small firms.
Monte Huebsch, CEO
Monday, November 2, 2009
UK small businesses are confident despite the continuing negative economic growth.
CBI’s Trends Survey of 424 small UK firms said that while demand for products, services and manufactured goods continued to be down over the last three months, the businesses expected the next quarter to improve. Their level of confidence is at the highest level since April 2007.
40% of the all the businesses surveyed said new orders declined in the past three months and 24% said there was an increase. The output of small manufacturing firms was down for 35% of the firms and up for 22% of them.
The US economy has returned to growth of .9% in the quarter from July to September, after 4 quarters of negative growth. The UK economy recorded a loss of .4% for the same period.
The stimulus measures taken in the US were more substantial than the action taken in the UK. The US Commerce Department said that, in the quarter, demand for manufactured goods increased by an annualised rate of 22%, the best result since 2001, largely as a result of the Government’s cash for clunkers car scheme.
The US housing market for housing products was up 23% annualised, the largest increase since 1986, a result of the government’s first home buyer’s US$8,000 tax credit. US exports also increased, by 21% on an annualised basis, the best result since 1996.
With the US, Japan, Germany and France now out of recession; the UK should go back into positive growth quickly.
Small UK businesses are resilient and will recover to help reduce the number of unemployed. We help them by sending them qualified prospects from our Local Search Facility in our UK Business Directory with no cost to them. There are 1.6 million businesses listed in our directory and most of them are small firms.
Monte Huebsch, CEO
40% of the all the businesses surveyed said new orders declined in the past three months and 24% said there was an increase. The output of small manufacturing firms was down for 35% of the firms and up for 22% of them.
The US economy has returned to growth of .9% in the quarter from July to September, after 4 quarters of negative growth. The UK economy recorded a loss of .4% for the same period.
The stimulus measures taken in the US were more substantial than the action taken in the UK. The US Commerce Department said that, in the quarter, demand for manufactured goods increased by an annualised rate of 22%, the best result since 2001, largely as a result of the Government’s cash for clunkers car scheme.
The US housing market for housing products was up 23% annualised, the largest increase since 1986, a result of the government’s first home buyer’s US$8,000 tax credit. US exports also increased, by 21% on an annualised basis, the best result since 1996.
With the US, Japan, Germany and France now out of recession; the UK should go back into positive growth quickly.
Small UK businesses are resilient and will recover to help reduce the number of unemployed. We help them by sending them qualified prospects from our Local Search Facility in our UK Business Directory with no cost to them. There are 1.6 million businesses listed in our directory and most of them are small firms.
Monte Huebsch, CEO
Tuesday, October 20, 2009
Small UK businesses think the recession will end in early 2010.
In a survey of 7,200 small UK businesses, BT Business reports that 75% of them think the business cycle will turn up next year with 35% saying they think it will improve in January next year.
Since there are 4.7 million small businesses, the positive response will to some extent be self fulfilling.
In addition, in the survey, 45% of small firms reported that their business had been improved due to the pressure exerted by the economic slump, and 41% say that they will diversify as the financial climate improves.
While half say that their business revenue is currently down, with 25% saying the drop is over 10%, 60% are upbeat about their expected results next year.
During the downturn, half of small businesses borrowed from family and friends rather than their bank.
The survey reports that small firms want more easy access to finance, legal advice and assistance in developing their business.
However, the restructuring firm, Begbies Traynor, says that over 130,000 small businesses are in financial trouble and that in previous recessions, small business failures reached a peak between one and two years after the UK economy returned to growth.
Ernst and Young agrees with them, suggesting that it will be 2012 before economic growth is restored to its long term average.
So small companies think that the end of the economic gloom is in sight but it appears that there will be more pain for them as growth returns.
We help UK small firms by providing them with qualified prospects from our Local Search facility in our UK Business Directory, at no cost to them. Most of the 1.6 million businesses listed in our directory are small firms.
Monte Huebsch, CEO
Since there are 4.7 million small businesses, the positive response will to some extent be self fulfilling.
In addition, in the survey, 45% of small firms reported that their business had been improved due to the pressure exerted by the economic slump, and 41% say that they will diversify as the financial climate improves.
While half say that their business revenue is currently down, with 25% saying the drop is over 10%, 60% are upbeat about their expected results next year.
During the downturn, half of small businesses borrowed from family and friends rather than their bank.
The survey reports that small firms want more easy access to finance, legal advice and assistance in developing their business.
However, the restructuring firm, Begbies Traynor, says that over 130,000 small businesses are in financial trouble and that in previous recessions, small business failures reached a peak between one and two years after the UK economy returned to growth.
Ernst and Young agrees with them, suggesting that it will be 2012 before economic growth is restored to its long term average.
So small companies think that the end of the economic gloom is in sight but it appears that there will be more pain for them as growth returns.
We help UK small firms by providing them with qualified prospects from our Local Search facility in our UK Business Directory, at no cost to them. Most of the 1.6 million businesses listed in our directory are small firms.
Monte Huebsch, CEO
Monday, October 19, 2009
The UK government has a goal of getting everyone online within three years.
Research by The Office of Digital Inclusion says that there are 14 million people in the UK who do not have internet access.
The inclusion of these individuals should produce a benefit of £22 billion including £8 billion income provided by additional online sales.
The estimate of the public sector saving is substantial, with £900 to be saved by a more economical contact system with clients, when those currently offline have access.
A number of companies are involved in assisting with the project, including Google and BT.
£12 million in funding will be provided to a number of organisations, to be controlled by Odcom, the regulator.
An essential aspect of making the project a success is for broadband to be less expensive and have wider coverage, particularly to rural areas.
Organisations which use self service to improve economies in providing their services will benefit greatly, with fewer employees required. Also, the option of working away from an office becomes more possible.
The research indicates there would be an income increase for unemployed people who gain online access due to enhanced work options and incapacitated individuals would also benefit in being able to work remotely.
As more commerce and communication occurs via the internet, not being online is a major issue.
We help effective communication by having extensive listings on Google for our UK Local Search facility in our Business Directory. We provide prospects to the 1.6 million businesses listed, at no cost to them.
Monte Huebsch, CEO
The inclusion of these individuals should produce a benefit of £22 billion including £8 billion income provided by additional online sales.
The estimate of the public sector saving is substantial, with £900 to be saved by a more economical contact system with clients, when those currently offline have access.
A number of companies are involved in assisting with the project, including Google and BT.
£12 million in funding will be provided to a number of organisations, to be controlled by Odcom, the regulator.
An essential aspect of making the project a success is for broadband to be less expensive and have wider coverage, particularly to rural areas.
Organisations which use self service to improve economies in providing their services will benefit greatly, with fewer employees required. Also, the option of working away from an office becomes more possible.
The research indicates there would be an income increase for unemployed people who gain online access due to enhanced work options and incapacitated individuals would also benefit in being able to work remotely.
As more commerce and communication occurs via the internet, not being online is a major issue.
We help effective communication by having extensive listings on Google for our UK Local Search facility in our Business Directory. We provide prospects to the 1.6 million businesses listed, at no cost to them.
Monte Huebsch, CEO
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