With the ever deepening economic crisis in China I suspect UK banks will be badly hit and will probably respond by yet again tightening their lending criteria with SMEs.
Now is the time to be as self-reliant as possible and to do this you need to ensure your cash flow is good. Clients should keep to the agreed payment terms as you don’t want to end up as a cheap funder to your clients. 30 days payment should mean 30 days and not 60 or 90.
We are finding more of our client’s customers stretching their credit as much as possible as they try to expand and benefit from the more buoyant economy. But this is not helped with tight lending criteria from banks making investment more difficult.
So good credit control becomes even more essential for your future financial health.