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Technology – an enabler


Government continues the mantra that SMEs are the lifeblood of this country, promoting economic growth, creating jobs and fostering innovation.  But, for many of us running small businesses, life is tough as hell and decent advice is difficult to find and often confusing as highlighted by Holly MacKay in her recent post.

Currently, for many service and manufacturing businesses, it is a given that a dominant buyer has all the power and that waiting for payment beyond the payment terms is commonplace. A recent survey published by Experian indicates that out of 1.7 million SMEs surveyed, over 600 thousand confirmed the above.

What really struck me in the survey report was that average debt has increased by 70% compared to a year ago, with a figure of £20,403 and with 1 in 5 of the surveyed companies facing bankruptcy, all mainly due to delayed payments.

If you are facing the above who can you turn to? This used to be banks but that avenue is much reduced.  You may have an exceptional CFO or financial advisor who understands all the nuances and options, in which case you are fortunate.

For many of us our accountants have a crucial role to play as they can expand their remit. Many of them have the capability of ensuring that their clients understand the possibilities out there, especially in short term asset financing both from a seller as well as a funder.

More and more accountancy practices are embracing technology, but merely offering a “cloud based accountancy package” is not enough.

Forward thinking accountants are using technology as an enabler that links collaborative services together to enable them to help their clients anticipate current and future needs.  From PeerPay’s perspective (the team behind FloFunder) this is:

  • aligned predictive analysis,
  • investment return on idle cash, and
  • real-time access of alternative funding that benefits all parts of the SME chain.