SME - what is preventing growth?

Small and Medium enterprises have been affected the most by the decline in banks lending. There can be advantages to alternative sources of lending to small and medium enterprises can be the key to growth.

No matter what form of finance you are considering give us a call on 0844 811 9463.

What we do to help with ensuring you have healthy cashflow?

Credit Control  

Due to lack of resources and/or time, companies are turning to outsourcing to remedy their credit control issues.

Credit control outsourcing will bring the following benefits:

• Improved cash flow
• Reduction in bad debt
• Improved working capital
• Reduced bank charges
• Staff free to concentrate on core business issues
• Continuity of service

Liquid Recovery continues to invest in IT and telecommunication which allows us to offer confidential credit control, as well as disclosed service to UK clients.

How do we do it?

• We have a cloud system that allows you access to see on real time what is has been said and what invoices will be paid, when and how
• Outsourcing your credit control couldn’t be easier. You simply provide us with an up to date customer list and a ledger on a regular basis, and we do the rest,
• We are pro-active in our chasing;
• All payments from your debtors will still go direct to you – we do not handle any money.

Credit Control – The Rules

Do:

• establish payment terms before you start selling on credit
• set and enforce credit limits
• chase payments as soon as they become due

Don't:

• provide credit without knowing your customer
• offer credit you can't afford
• be afraid to insist that customers meet their payment obligations you won’t lose your customer by asking them to pay
• continue extending credit to customers with poor payment records

Always use the telephone and never the email. Why?

If you email your customer it falls into all the other emails and won’t get considered. Also tone does not come across on emails and if you are looking to continue your business relationship with your customer emailing does not help in chasing the money.

By picking up the telephone you are maintaining that good business relationship with your customer. 

Make sure you ask the client whether they won’t pay or can’t pay!

Tip: Helping SME’s: Before speaking to the Bank for Finance...

What to do before you speak to the bank for an overdraft or loan.

 1.       Review your ledger – how much monies are overdue. Get the money in even if it means getting a debt recovery involved. The healthier your ledger the more attractive the company.

2.       Have your plant and machinery valued see if you can raise finance another way

3.       Review your credit control processes to assure anyone lending you finance that you have the right systems and process in place.   

Tip before speaking to the Bank for Finance - Helping SME

 What to do before you speak to the bank for an overdraft or loan.

1.       Review your ledger – how much monies are overdue. Get the money in even if it means getting a debt recovery involved. The healthier your ledger the more attractive the company.

2.       Have your plant and machinery valued see if you can raise finance another way

3.       Review your credit control processes to assure anyone lending you finance that you have the right systems and process in place.   

SME and Finance

LET US KNOW IF YOU AGREE WITH THIS ARTICLE BY BUSINESS MONEY

http://businessmoneynews.net/index.asp?ItemID=1422&rcid=75&pcid=69&cid=75

Project Merlin - target for lending to smaller firms missed - February 13, 2012

Figures released by the British Bankers' Association have shown that the five main UK banks missed their Project Merlin target for lending to smaller firms, but exceeded the overall lending target.

The banks met their overall commitments last year, with gross new loans of £214.9bn, but £74.9bn was lent to smaller firms - less than the £76bn target.

Stephen Gildert, EMEA head of SME lending at Experian, commented: “Demand for finance from creditworthy small businesses is subdued. There was a great deal of hunkering down and managing for cash throughout the downturn, and many of those now looking to invest are turning to cash reserves in order to fund growth ambitions. Flexible forms of finance are very much the flavour of the day for those that do want credit.”

Highlights from recent Experian research into SME finance:

·          Three quarters of the SMEs polled stated that they had access to additional cash that they could use within their businesses.

·          Almost half claimed they had access to cash reserves that they could use to fund their growth activities, while 19% had money set aside to cover emergencies.

·          Just under a quarter of firms polled intend taking on new credit during 2012.

·          Of the firms polled, 33% were undecided as to whether they would take on new finance.

·          Of those that intended to borrow, the greatest demand will be for flexible forms of finance such as business overdrafts (26%) and company credit cards (23%).

·          Only 8% of firms that had previously applied for commercial credit claimed to have been unable to obtain it.

Article Business Money News

A Big Thank you from Human Film

Liquid Recovery worked quickly and efficiently, recovering the debt within one week. Liaising with them was simple and required very little input from our side, freeing up valuable time for us to expand our business. Highly personable, liquid were a pleasure to work with. Their approach to debt recovery was clean and professional at all times and their service exceeded all expectations.


Many thanks,
Isabelle

Because your invoices should be paid on time.

 "If anyone is looking for an articulate, friendly & knowledgeable debt recovery service then look no further than Rashmi !. I can attest to her rapid service, even debts we have been trying to recover for YEARS were paid within the week once Rashmi was on the job, incredible or what !. We have tried for years to find a good debt recovery / debt management Company and now we have we won't be moving anywhere else - I highly recommend you speak to this Lady and the team at Liquid Recovery for credit control or debt recovery.

- Steven Barrett Managing Director, Portel AV Limited"