Published on 14 November 2010 by Tony Groom Normally most forecasting is done for lending, fund raising or other investor related purposes and therefore with hope of future growth built into the forecast. Such forecasts show how loans will be repaid and investors will achieve a return on their money. Such forecasts are often not […]
Category: Business Finance
The Questions HM Revenue and Customs Asks to Assess a request for Time to Pay Arrears #026
Published on 7 January 2011 by Tony Groom Recently uploaded guidelines for HM Revenue and Customs case officers dealing with requests from businesses in difficulty for Time to Pay for overdue VAT, PAYE and tax, reveal the detail of what questions will be asked before the request for a Time to Pay arrangement (TTP) can […]
The Focus Must be on Cash Flow When Times Are Tough #029
Published on 21 January 2011 by Tony Groom Profit and turnover are, of course, important measures of business performance but when times are as difficult as they are at the start of 2011 and many businesses are finding themselves in difficulties the main focus must shift to cash. Cash flow is the most immediate indicator […]
Managing Tax Payments With Time To Pay Arrangements #004
Published on 22 October 2010 by Tony Groom There are hundreds of thousands of businesses struggling to meet their financial obligations to the Exchequer. Businesses, especially smaller enterprises, have been reporting that in the current difficult economic climate they are struggling with cash flow issues as customers and suppliers try to stretch out the time […]
It is obvious why Bank Fees are High and Business Lending is so Difficult #051
Published on 3 June 2011 by Tony Groom Recently Business Secretary Vince Cable called for significant improvement in lending to Small and Medium Sized businesses (SMEs) through Project Merlin. The figures for January to March showed a shortfall of 12% against the £19bn that represents a quarter of the annual £76bn target agreed with the […]
HMRC’s Assessment Criteria for a Time to Pay Arrangement for Revenue Arrears #025
Published on 7 January 2011 by Tony Groom As businesses face continued tough trading conditions in 2011 a new series of guidelines has appeared on the HM Customs and Revenue (HMRC) website on the arrangements for paying arrears of tax, VAT and PAYE, known as Time to Pay (TTP). Although the guidelines are aimed at […]
Factoring and Invoice Discounting: Be Wary of Hidden Fees #038
Published on 1 March 2011 by Tony Groom Factoring and invoice discounting (borrowing money against invoices) can be a helpful tool for funding the working capital of a business. While it used to be regarded as a means of borrowing by businesses in financial difficulties, it is now a common source of finance for managing […]
Employee Equity Can Improve the Chances of a Successful Restructuring #034
Published on 31 January 2011 by Tony Groom Businesses and the UK economy are under pressure from inflation thanks to increased taxes, such as VAT, and commodity prices and also pressure due to declining sales thanks to the reduction in consumer spending. The current situation is unusual as there has been a considerable amount of […]
Do Small Businesses Understand Working Capital and Liquidity? #046
Published on 6 May 2011 by Tony Groom There is some doubt about whether small businesses in particular understand the concept of liquidity. When borrowing against assets, such as the sales ledger using factoring or invoice discounting or plant and machinery finance or property mortgages, there seems to be a widespread misunderstanding among businesses about […]
Dealing With VAT Arrears and PAYE Arrears #002
Published on 15 October 2010 by Tony Groom Owing Her Majesty’s Revenue & Customs (HMRC) more than £150,000 for overdue VAT and PAYE when your turnover is less than £3 million is not uncommon in 2010. A second, more extreme example of HMRC arrears was a labour services company that owed more than £100,000 having […]