SME’s reveal business drops in run-up to election

Political uncertainty has led to a slowing down of business markets and investment activity, according to Hitachi Capital Invoice Finance.


This lack of activity should not cause too much concern but it could place some pressure on smaller firms whose cash flows could be impacted by a lack of business.


A dip in activity is usually recorded in the run up to general elections, as uncertainty over future policies and actions means businesses take a more cautious approach.


While delaying investment decisions until after the election is an option, those that choose to act early could benefit in the long-term by getting ahead of their competition.


Investing may be seen as a risk but the inevitable wave of positivity that follows the period up to the election should allay these fears.


From a business point of view it’s important to remember that any new legislation will take some time to implement.


As a result a firm that chooses to invest under current market conditions could benefit in the short term before any new changes are introduced.


This could ease pressure on cash flows and ensure that finances are in order and available to aid growth and expansion across the financial year.


Businesses should also look to ensure that invoices and payments are kept up to date as this can help tackle any reduction in work or revenue that may be noted.


Given that late payments are already an issue for many firms, those who opt to delay payments even further could be placing great pressure on already stretched cash flows.


Good financial management is essential to ensuring this is not the case, but those with concerns should seek advice.


Insolvency practitioners in London can aid those in the capital with concerns, providing an array of options that could enable their financial situations to be resolved.


For firms with small cash reserves, altering their operating methods can have significant benefits, while opting to boost business now should also be considered.


Such options should enable these small businesses to ride out the storm surrounding the general election, providing the best basis for growth and success in the future.


By Phil Smith


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