What is insolvency?
A business becomes insolvent if it is unable to pay its debts when they’re due, or if the businesses liabilities (debts) are greater than the value of its assets. The term is often confused with bankruptcy, but insolvency is a state of being and bankruptcy is a matter of law. While insolvency can [...] CONTINUE
Alistair Darling has offered a lifeline to small businesses, by extending the availability of the enterprise finance guarantee scheme by six months to September 2010.
The scheme, which was introduced in March this year, means the government guarantees 75% on loans to small businesses who have a turnover of £25million or less.
Darling has recently announced that [...] CONTINUE
1. Over financing
Over financing is a mistake made by many small firms, and usually leads to business failure. Borrowing money and increasing interest rates on loans and charges are steps that must be taken with great caution, and you should make sure you fully understand the effects of doing so. Remember that if you fail [...] CONTINUE
More than half of small businesses are unaware of government financial schemes set up assist them, according to new research by the Asset Based Finance Association (ABFA).
The survey of more than 2,000 small businesses found that 56 per cent had not heard of the Working Capital Guarantee Scheme, Enterprise Finance Guarantee scheme(EFG), or the Capital [...] CONTINUE
Small firms are waiting up to four months for invoices to be paid by several big brand names, Federation of Small Businesses (FSB) research has revealed.
Around 4,000 business failures were caused by late payments last year and one in three FSB members are waiting longer to be paid during the credit crunch.
A number of small [...] CONTINUE
As many as 250,000 small businesses are being forced to pay for their energy up to 7 months in advance, it has been revealed.
Alistair Buchanan, chief executive of Ofgem, the energy regulator, summoned the UKs large gas companies — including Scottish Power, British Gas, EDF Energy, E.ON, RWE npower and SSE — to a meeting [...] CONTINUE
Recession or none, every business can count on having periods when sales are slower than others. Good business management is the key to surviving these periods, which means taking prompt but carefully considered action. Here are some tips to help you navigate your way through the storm.
Develop a new business plan
When tough times hit, [...] CONTINUE
Small business running costs fell by 1.4% in the first quarter of 2009, according to a new report by the MORE TH>N BUSINESS website.
The site’s Business Inflation Guide shows that the UK’s small businesses are experiencing unprecedented levels of deflation for the second quarter in a row.
Declining labour, advertising, vehicle and raw material costs have [...] CONTINUE
1. Send invoices promptly
Late payments are a huge problem for small business cash flow, so make sure you send invoices as soon as you can. If you are prompt in sending out your invoice, you will be more likely to get an efficient payment back. If you are having problems with overdue accounts however, see our [...] CONTINUE
The Trends in Lending report shows that net monthly lending to UK businesses has plummeted from £7 billion in 2007, to just £1.5 billion by March this year.
Lending looked especially grim for small businesses – as those with a turnover of less than £1 million saw a drop in both approval rates and in the [...] CONTINUE
