Some stats about what small businesses can’t get credit
In the ongoing credit crunch environment, with banks being extremely reticent to lend, and with such situation likely to represent the reality for some time to come, a business seeking credit needs to have it’s house well and truly in order before seeking finance.
Small businesses of course focus on generating more money coming in than going out, and this focus is completely understandable. However, failing to have systems and documents in place at an early stage reduces significantly the ability to raise finance and sources of help are available.
Research has been conducted on the above by restructuring and insolvency firm FRP Advisory who surveyed 150 accountancy, legal and financial advisors.
Some of it’s findings were :-
- 60% of those surveyed said that less than half of their SME clients produced regular management information on company results, not tracking their own
- 67% of advisors surveyed predict a rise in the number of corporate insolvencies during 2011.