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Expert fires business finance warning
10/05/2007
Company bosses in Yorkshire need to understand how to better manage their financial circumstances to avoid adding to the list of business failures in the region, one expert has warned.
Equifax figures show that the Yorkshire and the Humber region is one of only four nationwide in which business insolvencies are on the increase and Kate Sharp, the chief executive of the Factors and Discounters' Association (FDA), has called for action to turn the situation around.
Firms struggling with cashflow problems should aim to get a more comprehensive understanding of what their business is worth and how best to go about financing it, Ms Sharp told the Yorkshire Post.
"Often companies cannot see a way to raise cash other than approaching their bank to extend their overdraft," she is quoted as saying.
"However, many providers of invoice finance now advance up to 100 per cent against sales invoices based on the additional security provided by a debenture."
Equifax figures show that the Yorkshire and the Humber region is one of only four nationwide in which business insolvencies are on the increase and Kate Sharp, the chief executive of the Factors and Discounters' Association (FDA), has called for action to turn the situation around.
Firms struggling with cashflow problems should aim to get a more comprehensive understanding of what their business is worth and how best to go about financing it, Ms Sharp told the Yorkshire Post.
"Often companies cannot see a way to raise cash other than approaching their bank to extend their overdraft," she is quoted as saying.
"However, many providers of invoice finance now advance up to 100 per cent against sales invoices based on the additional security provided by a debenture."