Only 27% of small and medium-sized companies in the UK are credit checking new customers

Unpaid invoices and a lack of cash flow are two of the main problems experienced by small businesses at the moment, with some firms only one large fulfilled but unpaid invoice away from collapse.

"It is never a good idea to take chances with new customers, but it is more important than ever when times are hard to ensure that you are trading with legitimate businesses," said Doug Crawford, group managing director at Cattles.

"SMEs should take every opportunity to minimise the risks they face in the current environment, including introducing a policy to credit check every new customer as standard."

Source: Cattles Invoice Finance.

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Small business owners have been warned that if they do not address the increasing stress levels of staff then their company's productivity will suffer

Recent research by Investors in People and YouGov has found that 38% of employees in the UK say that their stress levels are higher than a year ago, but only 29% think their business is doing anything to address this.

Only 5% of employees said they are receiving more support from their managers than they did before the downturn and a mere 12% think their manager has adapted very well to the effects of the downturn.

"Increased stress in the workplace is associated with reduced productivity. Our research suggests that management has so far not addressed the current increase in workplace stress," said Simon Jones, chief executive of Investors in People.

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Business lending remains weak

Lending to businesses remained weak in April, according to the Bank of England's Trends in Lending report. In particular, lending to firms in the wholesale and retail trades and the manufacturing sector fell sharply over the past year. The report also highlighted that approval rates for lending to small and medium-sized businesses are falling but added that some lenders are expecting availability of credit to improve over the next three months.

For more on this story go to:
http://www.bankofengland.co.uk/publications/other/monetary/TrendsApril09.pdf


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The Intellectual Property Office is sponsoring an exciting new exhibition - Wallace and Gromit Present a World of Cracking Ideas

- which runs from 28 March until 1 November 2009 at the Science Museum, London.

We want general public and business alike to recognise the importance of intellectual property, and make informed choices to protect your innovation and creativity - in what we hope will be an entertaining way.

During the period of the exhibition, from 30 April until the end of September, we will run a series of IP business events through new and existing partnerships in a dedicated room linked to the exhibition.

Find out more: http://www.ipo.gov.uk/whyuse/events/events-bep.htm

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The Department for Business, Enterprise and Regulatory Reform (BERR) has published a leaflet for businesses detailing the importance of paying on time

The advice, which has been created in conjunction with the Institute of Credit Management (ICM), outlines what businesses can expect when they sign up to the Prompt Payment Code.

To read the leaflet go to:
http://www.icm.org.uk/PDFBin/188-075%20BERRpayingontimelft-web.pdf

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Women are only half as likely to start their own business as men

The research also found that by the time new businesses have been established for two years and set on a growth path, just 13% of companies are owned by female entrepreneurs.

Despite the relative lack of female owned firms, businesses run by women contribute £130bn per annum to the UK economy and experience similar growth patterns and turnover as companies owned by men.

Source - Women's Enterprise Task Force (WETF).

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UK manufacturing firms expect the decline in activity to ease in the next quarter

The survey for May reveals that 17% of manufacturers expect their output to increase over the next three months, against 34% that anticipate a drop in activity.

The resulting balance of -17% is up from -32% in April, and takes the measure to the highest level since September 2008.

"After scaling back production very sharply at the beginning of the year, manufacturers can see a glimmer at the end of the tunnel. They still expect manufacturing activity to fall, but at a much slower rate over the next few months," said Ian McCafferty, the chief economic adviser of the CBI.

Source - Confederation of British Industry's Industrial Trends survey.

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