Small Business Suffers As Big Business Keeps Cash
The Federation of Small Business (FSB) has reported that small businesses are waiting for as long as four months to be paid by big brand names. In fact, they say that almost 4,000 business failures last year were down to late payments. They also reveal that a third of FSB members are facing longer waits for payments during the recession.
The FSB reveals the names of large firms that small businesses have complained about and they include TNT and Bernard Matthews who have told small businesses that they will have to wait 60 days to be paid, as has the building firm, Jewson. DHL is even charging 3% for paying invoices on time.
The Federation of Small Businesses is urging these companies to sign up to the Government backed Prompt Payment Code to help improve the cash flow of small businesses especially during the present economic conditions. The FSB wants Companies House to be able name, shame and fine late payers.
Source and further details: http://www.fsb.org.uk/news.aspx?REC=5584&re=policy/news.asp
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Small Businesses Get Big Business Refit
The arrival of September will see The Carbon Trust introducing a new programme called the Big Business Refit, reports greenbang.com. The aim of Big Business Refit is to help small and medium sized businesses reduce their energy costs by improving their efficiency.
Businesses will receive financial support and advice with saving energy from the Carbon Trust. Many small businesses have turned to the Carbon Trust for interest free loans during the recession so help them pay for energy efficient equipment and technology.
Improved equipment means businesses will be able to cut their fuel bills at a time when businesses are looking for savings everywhere. The Carbon Trust loans are providing businesses with finance to improve their efficiency at a time when other institutions are reluctant to lend money.
Carbon Trust loans can be used to pay for replacing equipment costing between £3,000 and £400,000. It’s hoped that energy savings will pay off the loan and once paid off the savings will go to benefit the business. The Big Business Refit is offering £100 million in loans and it’s hoped that it will be able to help around 3,000 small and medium sized businesses.
Source and more information: http://www.greenbang.com/small-firms-to-see-funds-for-big-energy-refit_11368.html
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Businesses Don’t Benefit From Energy Price Fall
Wholesale electricity and gas prices have fallen dramatically over the last year, reports The Daily Telegraph. In fact prices have halved and are now at their lowest levels for three years in part due to the fall in demand as the result of the recession.
The fall in prices has meant there’s the prospect of cheaper prices for business and domestic customers although there is likely to be a large number of people out of contract shortly so this may affect the price of electricity and gas too.
This time last year gas prices were 90p a therm while prices have this year dropped to 38.4p a therm. At the moment the wholesale price of electricity is running at £40 a kilowatt hour compared to £80 this time last year.
It’s the drop in demand that’s resulted in an energy glut and has helped with pushing prices down. At the same time more liquid gas has been arriving but analysts suggest the increase in oil prices it’s believed will eventually feed through to the gas market.
Business customers had hoped for larger reductions in gas and electric contracts but various other problems such as bad debts, company failures and difficulties in obtaining credit insurance have meant there may not be such good reductions as expected.
Many small and medium sized businesses have been asked to make down payments of up to 100% for new contracts because suppliers argue they need security to cover bad debt. However, Ofgem has said suppliers face an enquiry from the Competition Commission if they fail to reduce the demands on small businesses.
Source: The Daily Telegraph Business Section (25th August 2009)
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Swine Flu May Mean Small Businesses Close
In a poll by law firm Eversheds, one in five businesses say they expect they will have to close or partly close their work places if they have an outbreak of swine flu, reports The Daily Telegraph.
This proved quite surprising and showed that many businesses are concerned about the financial impact an outbreak of swine flu may have on them and the predicted staff absenteeism.
About 75% of businesses said they had already lost staff to swine flu but 41% of them admitted they didn’t have any contingency plans in operation to cope with a sudden increase in staff absenteeism which is expected in the autumn.
Source: The Daily Telegraph Business Section (18th August 2009)
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Small Businesses Struggle To Go Green
The Environment Agency reports that small and medium sized businesses are not following green practices in the downturn. The Daily Telegraph reports that more than 50% of businesses said their environmental policy was of no use to their business during the present economic climate.
The Environment Agency said they were disappointed that businesses were not prioritising green issues at the moment after previous evidence showed green practices had improved.
NetRegs, an environmental website said that over the last two years the number of small businesses reducing energy and water consumption had doubled. They also found that 85% of small businesses were recycling waste up from 66% in 2007 and over half had done something to reduce their contribution to environmental damage.
The NetRegs research showed that many small businesses were in denial over the impact their business had on the environment. Strategy Manager at NetRegs said “SMEs make up 99% of British business so their cumulative impact is huge. They simply cannot be apathetic or maintain indifference.”
NetRegs is trying to encourage businesses to give an employee the responsibility of overseeing energy improvement programmes and in doing so become green ambassadors”.
Source: The Daily Telegraph Business Section (August 18th 2009)