The Institute of Chartered Accountants in England & Wales has recently published its Business Confidence Index for the second quarter of 2019. And pretty grim reading it is.
Even companies with the most rigorous credit control procedures run the risk of incurring a bad debt should a customer fail. For smaller companies, incurring a significant bad debt can result in the end of the business itself.
According to research by peer-to-peer lending group, rebuildingsociety.com, the average SME business owner has invested £22,700 of their own personal money into their business in the last year. And the study shows that 37% of those planning to raise money outside traditional bank borrowing will use their personal credit cards (despite standard interest rates typically being around 18.9%, and often much higher).