Factoring Partners, weekly blog
A quiet week in the world of Factoring Partners as a number of ongoing deals seemed to get stuck in the system, a combination of prospect indifference and diminishing financial requirements causing the slowdown.
The week was livened up by the remarkable news that the Bank of England Monetary Policy Committee decided to maintain Bank Base Rate at 0.5%. The only curiousity in this decision being that it was a unanimous vote whereas in previous monthly discussions there has been one dissenting voice advocating a rise in rates.
This unanimity would appear to remove any doubt or hope that there will be a rise in the near future. I’m no expert but that seems to position me well to comment on the absence of any likely rise compared to the ‘experts’ consistent in nothing else but their inability to correctly predict the timing of any rise in rates.
Elsewhere in the world as it affects small businesses in the UK, more evidence of abuse by large buyers over their suppliers, a continued weakness in equity markets brought about by, among other things, continually falling oil prices which in turn are not pro rata passed to petrol buyers.
A further cost will hit many SME’s on 1/4/16 as the new National Living Wage takes effect, giving workers in the UK over 25 years old a .50p increase. Its a good job there’s money in the system, from a variety of sources.
SME’s in the UK are often praised by politicians as being the life & soul of the economy yet continue to come under pressure whether it be from their customers who try to use them as a free credit line, or a complex and fragmented lending market full of options but with few independent sign posts along the way. Add a largely unhelpful banking sector into the mix and the lot of an SME is not a happy one!,