Economy opening up after Lockdown?
More of the economy is opening up and people are now able to go out for a meal, go to the pub and cinema and go on holiday to number of destinations without having to quarantine on their return. The return of these businesses is a welcome sign that there is some semblance of normality […]
More of the economy is opening up and people are now able to go out for a meal, go to the pub and cinema and go on holiday to number of destinations without having to quarantine on their return.
The return of these businesses is a welcome sign that there is some semblance of normality returning to the country, albeit a new normal.
The easing of restrictions and reopening of the UK economy has had a favourable impact on business activity. The UK PMI Index report from IHS Markit shows the downturn in the service sector is levelling off as shops are opening and other businesses are allowed to follow suit, but the economy still remains subdued overall. The UK Service sector PMI rose to 47.1 in June, a marked improvement on May’s 29.0, however this still places the economy in retraction (as it remains below 50). According the report approximately a third of companies reported that activity shrank in June, much better than the 54% in May and 79% in April, with a quarter stating that business activity had picked up.
Duncan Brock, group director at the Chartered Institute of Procurement and supply said,
“Businesses securing their premises to ensure Covid safety for staff and customers means operating costs are rising. Some firms are resorting to heavy discounting, others accelerating innovative solutions to change their operating model to stay in business. For others, the decision to shed jobs may be the only solution as the fight for survival continues and the UK economy grits its teeth for the months ahead.”
While the economic situation is still challenging for many businesses, there are some signs of a slow recovery starting to happen. The government’s furlough scheme is due to run until the end of October, offering some respite for companies to try and build their businesses again without laying off staff and the Bounce Back Loan scheme is due to remain open until November 4th.
As businesses reopen many will be assessing their liquidity and cash flow. The key things that can impact your cash flow are late or non-payments of invoices. This has been a difficult time for most businesses, and it is understandable that many business owners are uncomfortable asking for money that they are owed for goods or services already provided for fear of souring a relationship with a customer and jeopardising the possibility of future work.
However, ensuring that you are paid for work that you have done is not an unreasonable request. It could be the difference between you having to borrow money or lay off staff. Partnering with an established and ethical company who can work on your behalf to ensure that money owed is paid is key to ensuring the stability of your own company. A highly trained debt solution company will have skilled staff who are able to save you the time of chasing invoices or recovering money and do so in a way that protects the relationships you have with your existing customer base.
Daniels Silverman is a family owned, established company that has been successfully providing debt recovery and credit management services to clients of all sizes for 25 years. Our professional debt collection team confidently provides bespoke debt recovery solutions for our clients and is regarded as one of the top debt collection and credit management companies in the UK.
If you are owed money and struggling to forecast your debt flow, why not give us a call to see how we can help? We never expect our clients to pay for our services unless we are successful, so you have nothing to lose! Get in touch today to see how partnering with Daniels Silverman could benefit your company and help to secure your future in these uncertain times.
You can contact us via our website where we have friendly agents waiting to talk or you can call direct to speak to a member of staff who would be happy to find out more about your requirements.