New credit rating system to help small businesses.
Posted on September 30th, 2009
Many SMEs have faced problems in recent months with the withdrawal of credit following credit checks and the downgrading of their credit rating.
A new venture is hoping to reduce this, by improving the flow of information to ratings agancies, lenders and banks. CreditPal – from Futre Route and Graydon UK, is billed as a way for “Credit insurers to insure more, suppliers to supply on the right terms and customers to place orders with confidence”.
CreditPal hope to stem the sea change between small and medium enterprises and the credit industry. The service is based on an algorithm designed by Alan Turing of the enigma WW2 code cracking team.
With leading credit insurers Atradius and Coface showing their support for CreditPal, and recommendations from the FSB and the Institute of certified Bookkeepers, Creditpal could make a difference.
NPower is also among the energy companies that have warned of innacurate credit mratings – a problem that hopefully could be stopped with Creditpal
Tags: business advice, business credit, credit rating
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Business late payment index shows improvement
Posted on September 29th, 2009
Experian, the global information services company showed the improvement in a press release yesterday. The report showed that Businesses were paying each other more promptly than at any other time during the year.
The report breaks down the number of business days beyond the agreed payment terms that it takes for businesses to make payment. In August this was an average of 23.40 days.
The information is also industry specific. Agriculture, forestry and fishing are the fastest payers, with the property sector bringing up the rear.
Businesses in Greater London took the longest, yet also showed the most improvement. Small businesses are perhaps feeling the pinch the most, as those with 6-10 employees took the longest to make payments.
For business advice, including how to prioritise payments, and ensure that you are paid promptly, call one of our business consultants on 01424 776215
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Experian release positive news for business failure rate
Posted on September 22nd, 2009
Experian, the global information services company has released remarkably good figures in its latest survey of business failure rates.
The figures, part of its Insolvency and distress index, were at their lowest level since september 2008. Previously the figures had been steadily increasing since 2007.
0.09% of UK businesses failed in August, the lowest level this year. The number of business insolvencies also dropped by 23% compared to July. Augusts total of 1796 business insolvencies was the lowest month during 2009.
Experian’s distress score index – a figure to show the likelihood of a business failing in the near future – improved from 80.61 to 80.79, with 100 being the least likely to fail.
Very small businesses (those with up to 5 employees) proved to be the most resilient, with low insolvency rates, and an above average improvement in their financial stability.
Argo Business Consultants can work with Businesses of all sizes to help you improve your stability, and a free business health check can help you ensure that your business is heading in the direction you want it to.
Tags: business advice, business consultants, business failure, business insolvency, experian
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Is business sense a genetic trait?
Posted on September 22nd, 2009
An article in The Telegraph today hints that entrepreneurial traits can be attributed to genetic factors.
The study, which covered 1700 sets of British twins, aimed to find out if good business sense and entrepreneurial skills could be taught, or whether you are ‘just born with it’.
The research found that if one twin was entrepreneurial, then the other was likely to be so too. The pattern of instances in which this occurred could not be explained by age, sex, income, marital status or race.
A second study focused on the effect of chemical reactions in the brain that can increase the likelihood of the person becoming self employed and have more individual attributes.
They claim that “Genetic factors have a statistically significant and substantial effect on the propensity of people to engage in entrepreurship.”
I’m sure that the likes of Sir Alan Sugar and Sir Richard Branson would agree!
Tags: business advice, business consultancy, entrepreneur, genetic
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Small Businesses affected by Postal Strikes.
Posted on September 17th, 2009
Postal workers across the UK are being balloted today for national strike action. The ballot, by the Communication Workers Union (CWU) covers 121,000 staff.
The result of the ballot, which is expected on the 8th or 9th of October, could cause major disruption to SME’s across the country. Services have already been affected by localised unofficial strike action.
The action is in relation to the current ‘modernisation’ process by Royal Mail. The union has expressed its concern at the loss of jobs and reduction in service delivery to small businesses that could be attributed to such a modernisation scheme. Likewise, the Royal Mail has also discussed the benefits of modernisation and branded the CWU’s intended action as “Wholly irresponsible”.
Has your business been affected by the latest wave of postal strikes? Do you favour the Royal Mail or the CWU? Have your say below.
Tags: business advice, cwu, postal strike, royal mail, small business, sme
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Are benefits discouraging the unemployed from finding work?
Posted on September 17th, 2009
2 news stories this week have accused the current benefits system of discouraging the unemployed from actively seeking work. The Federation of Small Businesses and Ian Duncan Smith have both shared their feelings regarding the Jobcentre Network, and the benefits system respectively.
The FSB have shown concern over the quality of advice given by the Jobcentre Network to applicants. Research of their members found that 34% thought the centres were ineffective, and 49% did not know if they worked well or not.
These concerns are being brought about by candidates being “badly briefed” on the jobs being advertised by small businesses. One respondant commented: “I had 55 applicants for my last vacancy. Only 5 had the relevant qualifications.”
The number of under 25 year olds on JSA has risen by 80% over the last 12 months, prompting the FSB to state that “it is clear that urgent action is needed”
Ian Duncan Smith, former leader of the Conservative party has also this week commented on the benefits system. He has said that a complete overhaul of the system is necessary, reducing the number of benefits from 51 down to 2.
His vision is to see the number of people in the UK that face a ‘financial disincentive’ to work plummet. This financial disincentive is similar to that face by some claimants on the current Channel 4 documentary “Benefit Busters”. On returning to work, some claimants are finding that they are financially worse off.
His plans are succinctly described in this article in the Guardian.
Tags: business advice, employment, federation of small businesses, jobcentre
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New academy to offer office space in return for mentoring
Posted on September 17th, 2009
The newly built Milton Keynes Academy has just opened its doors to its first 1200 students, and there is a real feeling that this is something different.
Viewing the 3d mock-up videos of the new buildings gives an insight into what the pupils can expect at theis cutting edge school, especially when you enter the ‘Enterprise Hub’.
The enterprise hub contains various facilities, including meeting places and open plan ICT centres, but there is one addition that you wouldn’t expect to find in any other school. Marketing firm Beanwave have set up residence in the enterprise centre in an innovative link-up with the school.
Beanwaves founders, James and Celia Bristow, were approached by the academy’s head of business and enterprise Sean Hickey. The agreement saw the Academy offer Beanwave free office space, including business rates and utilities, in return for 4 hours a week working with the students.
This can only help the business community surrounding the academy, by giving students a grounding in various business skills. “The idea is that they are learning about real enterprise and employability skills that are as important as academic qualifications” said Mr Hickey.
Tags: business advice, business consultancy, education, enterprise
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New minimum wage and redundancy rates – don’t get caught out.
Posted on September 10th, 2009
Small businesses employing staff on or near the minimum wage should take note of changes that will come into force as of 1st October.
The 3 main changes involve the hourly rate for the National Minimum Wage (NMW), The inclusion of tips into the NMW and The weeks pay limit for calculating redundancy payments.
The NMW will rise on 1st October. It applies to the vast majority of workers, and you must not pay employees below this rate.
- £5.80/hour for workers aged 22+
- £4.83/hour for workers aged 18-21
- £3.57/hour for workers under 18, and no longer of compulsory school age.
The new NMW must not include service charges, tips or gratuities that you pay them through the payroll. These should all be paid on top of the new minimum wage.
From 1st October, the limit for calculating a weeks pay for redundancy purposes will also increase. The figure will rise from £350 to £380.
The increase is not just for calculating redundancy payments. It will also apply to other employment tribunal calculations such as compensation for non-compliance with flexible working procedures.
This will be the last change to the weeks pay limit until February 2011.
Tags: business consultant, national minimum wage, sme
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Small Business Enterprises are rising out of the ashes.
Posted on September 10th, 2009
A trend has emerged recently where Small Businesses are being formed out of the remains of larger groups. AS Fabrications is one example, being formed after Glentworth Architectural Metalwork went into administration.
The Wentworth Group, of which Glentworth was a part, was “experiencing short and long term cash flow problems and difficult trading conditions.” The former managing director Mick Fortune launched the new venture after securing a grant and banking facilities.
“when you have 39 guys made redundant and 5 to 6 of them are related to you it’s difficult” said Mr Fortune. “You have to look at the situation. Your customers want you to carry on and so do your suppliers. It’s very daunting but we have had a cracking few months with plenty of enquiries and I am now very happy.”
The company has bought the machinery and stock from Glentworths administrators, and been able to hire almost half the original workforce. It operates from the same site and produces the same range of products.
If you are looking to take on a new business venture, call Argo Business Consultants on 01424 776215 to speak to one of our business advisers
Tags: business advice, business consultancy, business start up
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UK Mobile Industry about to be turned upside down
Posted on September 10th, 2009
The merger of Orange and T-Mobile could cause a huge change in the UK mobile phone industry over the next few years. The deal will create the UK’s largest mobile phone operator, with the two companies having a combined 37% market share.
France telecom, owner of Orange, and Deutsche Telekom, owner of T-Mobile, will each have a 50% share of the venture, and are providing an equal share of the board members. Oranges Tom Alexander will take up the Chief Executives position, with T-Mobiles Richard Moat becoming the new Chief Operating Officer.
Orange and T-Mobile currently account for the 3rd and 4th largest mobile phone operators, with O2’s 21.5% market share keeping them top. The merger will see the new mobile phone giant dwarf O2 in many respects.
O2’s lucrative iPhone deal with Apple could become very shaky, with both France Telecom and Deutsche Telekom offering the iPhone on their home soil. Both companies have previously shown an interest in Apples smartphone, and the merger could place them extremely well.
The deal is also likely to see job losses, and cut the number of mobile phone masts in the UK – something which campaigners will be happy about. It has been reported that the merger could see as many as 5000 masts removed, and large cuts in the 19000 staff that work for the two companies.
Tags: business adviuce, business consultancy, mobile business, orange, tmobile
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