BUSINESSNEWS
Cashflow problems undermine four in ten small firms
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FOUR-IN-TEN ( 38 %) SMALL AND medium-sized businesses ( SMEs ) have suffered cashflow problems over the past two years , according to new research1 by Amicus Commercial Finance , the specialist lender of flexible working capital to SMEs . The figure rises to two-thirds ( 65 %) among mediumsized firms with between 50 and 250 staff .
According to the study conducted among 500 small businesses owners , over the past two years one-in-seven ( 15 %) are still suffering liquidity problems and 12 % either came close to or became insolvent . Small businesses
recognise the threat cashflow problems can pose ; nearly three-quarters ( 71 %) say it is the biggest risk they face .
The biggest challenge caused by cashflow shortages is paying suppliers , cited by 41 % of business owners . This is followed by meeting debt repayments ( 30 %), buying inventory ( 29 %) and paying staff ( 24 %). One-in-five ( 18 %) said they had lost contracts due to cashflow problems .
John Wilde , Managing Director of Amicus Commercial Finance , commented : “ Our research shows that most small firms recognise
the damage caused by cashflow problems but that doesn ’ t guarantee their immunity . The worst case scenario is insolvency but in our experience , slow paying invoices are often to blame .”
MARKETING MATERIALS BECOME MORE FLEXIBLE
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THE VEKA UK GROUP has announced the latest promotional item to be added to its Approved Installer Scheme ’ s online Marketing Hub ; an A5 completely customisable leaflet .
The Marketing Hub ’ s professionally designed promotional materials have been among the Approved Installer Scheme ’ s most popular benefits since the initiative premiered at the 2014 FIT Show , with more than 650 installers and fabricators joining since its launch .
Amy Grundy , National Sales Manager for the Approved Installer Scheme commented : “ Installers love the Marketing Hub as it offers a means of presenting themselves in a truly professional style , with the kudos that the VEKA and Halo logos bring .
This leaflet represents the first time that businesses have ‘ carte blanche ’ – so promotions don ’ t have to be discount-led and images can be changed as desired .
“ The request to offer a leaflet in this format came from an Approved Installer who is a regular user of the Marketing Hub . We love to hear installers ’ ideas and feedback as it helps us to improve our service , and we were happy to take this suggestion on board and implement it as soon as possible . It ’ s already seen a great uptake online .”
www . vekauk . com / approvedinstaller
DRIVING SALES
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BMW BUILDING PRODUCTS – ONE of the latest companies to join pioneering installer support organisation , Network VEKA – has wasted no time in making the most of the benefits now available to it .
John Jefferson , Managing Director at BMW Building Products explains : “ Over the past few years , we ’ ve taken several steps to further capitalise on more than three decades of success throughout the North East .
“ An investment of over £ 300k in a new showroom and factory expansion saw our turnover increase by 22 % over a three-year period , allowing us to create several new jobs .”
“ Network VEKA has provided the support to take our already flourishing business to the next level .” A famed 10-year insurance-backed guarantee is among the most significant advantages for Network VEKA customers – honoured in the unlikely event that their installer should unexpectedly cease to trade .
“ The financial aspects of Network membership were some of the most attractive
to us when joining ”, John continues . “ Customers know their investment is protected by a comprehensive indemnity guarantee from the moment they pay their deposit . It all serves to build confidence in our provision , and the All Checked online review portal further strengthens that trust .”
www . bmwwindows . co . uk
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