Many might say we are not heading for a downturn just yet and they could be right but we would suggest you do not ignore the vulnerabilities:
CFO survey points to defensive outlook
The Q2 CFO survey by Deloittes highlights a marked shift in the attitude of UK Chief Financial Officers towards a more defensive stance – conserving cash, reducing cost and asset disposals:
As larger corporates tighten their belts so their suppliers and partners feel the pinch – that’s you, your customers and maybe even your suppliers. Cash circulation slows down, payment terms are extended and life gets tougher for SMEs.
Action to take now
If you do not yet have robust credit management policies and procedures then now is the time to introduce some. If you already have policies in place then take the time to review them thoroughly. Pay attention to:
Plan for the downturn, enjoy the upturn
It may, of course, never happen. The economy may ride out all the vulnerabilities and shocks we have seen. Life may flow smoothly on...
However, when has a little housekeeping or spring cleaning ever been bad? If you’re prepared for the worst then you won’t be one of those struggling to catch up if things do take a dip.
If you would like to speak to us about getting prepared and what changes your business may need to ride out any economic problems then do email us at email@example.com.