Responding to the surprise fall in unemployment revealed in the latest figures from the Office of National Statistics (ONS), Edward Rimmer, Chief Executive of Bibby Financial Services UK, comments:

“Its encouraging to see positive signs of possible economic recovery, with the latest ONS figures showing the unemployment rate has dropped to 7.8 per cent a decrease of 33,000 to 2.45m people.

“We know from reviewing the performance of a range of sectors in our latest Business Factors Index that small businesses in the UK have been hit hard by the recession, with one in four owners and managers reporting that they are struggling to survive – but these figures will give the economy a much-needed boost at a crucial point in the year.

“Looking ahead at a brighter future, it has never been more important that small businesses are well prepared to bring on new staff for an increase in business, and a rise in outgoing customer invoices. The issue of cash flow and survival are intrinsically linked and businesses will do well to invest now to ensure they have robust credit management systems in place.

“Alternative cash flow funding solutions, such as invoice finance, can plug the funding gap left by the banks by providing an immediate injection of cash into the business against the value of outstanding customer invoices and also ongoing funding as invoices are raised. This frees up vital cash flow to ensure companies have a healthy flow of funds and do not hit cash flow difficulties further down the line.”

Edward Rimmer, Chief Executive, Bibby Financial Services UK

Article submitted by Business Credit Management