Skip to main content
Here are some excellent resources for your business

Search

For a successful business, you need a viable business idea, the skills to make it work and the funding. Discover whether your idea has what it takes.

Forming your business correctly is essential to ensure you are protected and you comply with the rules. Learn how to set up your business.

Advice on protecting your wellbeing, self-confidence and mental health from the pressures of starting and running a business.

Learn why business planning is an essential exercise if your business is to start and grow successfully, attract funding or target new markets.

It is likely you will need funding to start your business unless you have your own money. Discover some of the main sources of start up funding.

Businesses and individuals must account for and pay various taxes. Understand your tax obligations and how to file, account and pay any taxes you owe.

Businesses are required to comply with a wide range of business laws. We introduce the main rules and regulations you must comply with.

Marketing matters. It drives sales and helps promote your brand and products. Discover how to market your business and reach your target customers.

Some businesses need a high street location whilst others can be run from home. Understand the key factors from cost to location, size to security.

Your employees can your biggest asset. They can also be your biggest challenge. We explain how to recruitment and manage staff successfully.

It is likely your business could not function without some form of IT. Learn how to specify, buy, maintain and secure your business IT.

Few businesses manage the leap from start up to high-growth business. Learn what it takes to scale up and take your business to the next level.

SMEs and suppliers in tug-of-war over credit

9 June 2020

Small firms and their suppliers are struggling to agree payment terms as both face cashflow problems because of unpaid invoices.

A new report from small business lender iwoca has warned that the coronavirus pandemic is creating a trade credit crunch as 40% of businesses are currently facing over £10,000 in unpaid invoices. It comes as customers seek longer payment terms and suppliers look to cut them, leaving one in four firms worried that they won't survive into 2021.

The proportion of SME owners that owe large payments to their suppliers has increased significantly. In the past 30 days, 41% of respondents asked their suppliers to extend payment terms - up from 27% in the year leading up to the outbreak of coronavirus.

At the same time, 34% of small business suppliers say they are more likely to either ask for immediate payment or shorten their payment terms in the future to minimise their exposure to unpaid invoices.

"What's emerging is a concerning game of 'tug of war' between small businesses as they look to survive and plan for the future," said Christoph Rieche, co-founder and ceo of iwoca. "Buyers can't pay their invoices because they don't have the revenues and sellers are being asked to provide longer payment terms to ease the strain whilst already sitting on a growing backlog of unpaid invoices.

"Coronavirus can and should help trigger a step-change for small businesses to become more efficient, productive and resilient. We believe the first and most obvious change is to make payment terms fairer between suppliers and customers."

Iwoca has launched a new product - iwocaPay - that allows customers to choose payment terms of up to 90 days. At the same time, suppliers will be paid immediately through iwoca.

Supply and logistics issues are particularly prevalent in the retail sector, according to new research conducted by Opinium for LiveArea. Its findings show that:

  • More retailers are being challenged by supply and logistics (72%) than by changes in demand (70%) during the COVID-19 crisis;
  • Other major obstacles include work planning and staffing (50%) and cashflow and credit concerns (31%).

However, while many businesses are struggling, those with strong and advanced digital capabilities have adapted. Digital commerce (72%) and IT infrastructure (60%) are the top investment priorities following the pandemic.

Written by Rachel Miller.

Stay up-to-date with business advice and news

Sign up to this lively and colourful newsletter for new and more established small businesses.

Contact us

Make an enquiry