Daniels Silverman urge SMEs to undertake a full credit overhaul

More bad news for SMEs. Use our free top tips to boost cashflow and reduce bad debt Current financial news points to the 2012/13 financial year being another tough one for small and medium enterprises. Since October 2009, according to the Bank of England, lending to SMEs has fallen every year. Latest insolvency statistics released […]

More bad news for SMEs.
Use our free top tips to boost cashflow and reduce bad debt

Current financial news points to the 2012/13 financial year being another tough one for small and medium enterprises.

Since October 2009, according to the Bank of England, lending to SMEs has fallen every year. Latest insolvency statistics released by The Insolvency Service show 4,260 company insolvencies in the last quarter of 2011, a rise of 7.2% on the same period a year ago with compulsory liquidations increasing a staggering 16.1% .

Only the fittest will survive and remain profitable. Daniels Silverman are urging businesses everywhere to undertake a full credit review and overhaul of internal credit processes to ensure a successful future and avoid becoming one of the above statistics.

Carole Hughes, managing director, Daniels Silverman, says: “We have seen a 18% increase in the number of enquiries from businesses seeking to recover unpaid debts and overdue accounts. Many problems could have been averted by companies reviewing and overhauling their internal credit control procedures. By making simple changes to their credit control procedures such as how and when they grant credit and reviewing how they chase unpaid invoices, a company can boost cash-flow and drastically reduce it’s bad debt provision.”

Key areas to review are:-
• How credit limits are set and monitored
• Internal dunning cycles and collection strategies
• Terms and conditions of trading, and
• The use of third party debt collection agencies to resolve problem accounts

The Government’s current attempts to help SMEs boost trading and profitability do not go far enough, and business owners need to ensure they do everything they can to help themselves. For a free copy of Daniels Silverman’s Top Tips for Credit Control please contact us