Unclear and inflexible supplier contracts have cost SMEs ￡4 billion in the past three years. The survey, published by the Federation of Small Businesses (FSB), showed that 2.8 million small firms have incurred further costs as a result of issues within the terms of their contracts.
What's more, a separate business survey has shown that UK SMEs wrote off a combined ￡5.8 billion in the last financial year, with 19 per cent of those consulted saying they had written off debts of approximately ￡30,000 and 9 per cent claiming to have written off debts in excess of ￡100,000. The primary reason cited was that the suppliers had become insolvent and were unable to pay their debts.
The FSB has called on the Government and regulators to be "more routinely and explicitly focus on small business vulnerabilities".
Our SME business experts at Beavis Morgan are available to structure your business with cashflow and profit forecasting to measure performance and maximise opportunities. We work to a pre-determined plan, to help you avoid any nasty surprises.
Through our partner businesses, BM Structured Finance and BM Advisory, we are also able to help with sourcing and restructuring debt finance for SME businesses, as well as assisting with resolving issues which can impact on business performance and success, and finding innovative solutions for businesses and individuals in distress.