A recent survey by Lloyds TSB Scotland’s business monitor has found that a slow down in exports is stalling the recovery of the Scottish economic recovery.
However the survey, which canvassed over 400 firms, found that it was not this that was most worrying business leaders. Weak demand was said by many to be a high concern, but there were also significant worries over cash flow.
Difficulties in getting credit and the cost of commercial finance in Scotland, if it is indeed possible to secure lending, were cited as being protagonists. However, many businesses are suffering with late payments from customers, which is a huge concern.
It is for this reason that many companies are beginning to look at invoice factoring as an answer to their cash flow issues.
Historically, a hidden problem with economic recoveries has been the lack of investment made in new opportunities, which are often widely available at times of downturn. Not being able to access promised income prevents these new ventures from being exploited, which in turn leads to stagnation and increases corporate pressures.
Whilst admitting that the recovery has slowed to negligible growth, Lloyds TSB Scotland’s Donald MacRae, said all it needs is faith and action from customers and leaders to kick-start it.
“A more vigorous recovery awaits an uplift in both consumer and business confidence”.
By introducing sensible financial strategies, companies can not only sustain themselves and their staff, but ensure they are in a strong position as the recovery does pick up pace.