The weekly review starts with a bit of a rant! A number of instances seen this week of large businesses withholding payment to suppliers for no legitimate reason. This is a grubby, sharp practice many large businesses, including household names, seem to think acceptable business practice. It isn’t. If a business buys goods or services on terms then the buyer should adhere to those terms. A perfectly viable business can be ruined by its customer extending payment terms.
Some businesses, again including household names, appear to adopt an almost macho posturing attitude towards paying suppliers. It is not always practical for a small supplier to take an ultra assertive approach with the customer leaving the supplier vulnerable to bullying tactics. Solutions to this problem are difficult and to a certain extent a cultural shift is needed.
Bank of England minutes show that all nine policy makers agreed on holding Base Rate at 0.5% revealing that the dissenters from earlier meetings who had voted for an increase now are happy to keep the rate set nearly 6 years.
The general view is that rates won’t rise before the May election and that any subsequent rise will be only a small increase, possible 0.25%.
Consequently funding for business remains very cheap and importantly, accessible. I have spoken with a couple of businesses this week complaining at the lack of funding. In both cases the proprietors have poor track records in repaying debt, not through a ‘can’t pay’ issue but a ‘won’t pay’attitude. It’s hardly surprising lenders will not rush to offer facilities.
A day, or large part of it, was lost trying to unravel the mysteries of search engine optimisation, any help gratefully appreciated!