5 Factors That Could Impact On Business Debt In The Next 6 Months
If you’re a business owner, you will understand how vital cash flow is vital to survival. In the uncertain economic times we now find ourselves in maintaining that cash flow will be vital and this will often involve pursuing late payments as early as possible to avoid the impact it can have on your own business survival. Here are the top 5 factors that may impact on your Client’s ability to pay on time.
Falling pound
A falling pound will have all sorts of major impact on the economy. It will make imports more expensive and drive up costs for certain businesses, particularly if they are priced in dollars. Fuel costs will also rise as the cost of oil (priced in dollars) increases.
Tax hikes
The chancellor has promised tax hikes and there is no reason to believe this won’t be the case in the next Budget. This will of course hit businesses and employees.
Inflation
Inflation will inevitably rise of the value of the pound falls against other major currencies. This will make equipment more expensive to purchase and increase business costs. If these cannot be passed on to customers, then profits will be hit.
Possible Recession
Recession as a result of the economic shock of leaving the EU is a possibility. Recessions cause problems in all areas of the economy including business investment.
Consumer Spending
When economic forecasts are gloomy and the cost of living rises, people are less likely to spend on the high street. The latter has barely recovered in the eight years since the last recession.