Credit Insurance: The Business Rates Risk
Many business owners in England will now be aware of the business rates increasing and how this increased cost will mean that they will have to increase their revenues to cover the additional overhead. Â An obvious thing to say but it's true, if your costs go up, your prices will have to go up too. The shadow business secretary, Rebecca Long-Bailey, has announced that small businesses should be offered more emergency help.
What's the damage?
Whilst many businesses are expecting small falls in business rates in April, around a third are expecting very severe rises. Even after the government's planned use of £3.6 billion to help support the hardest hit, a fifth of the businesses hit are expecting to see a rise of more than 40%. Most of these companies are situated in the South East of the country. The Federation of Small Business is warning that 50% of these businesses that will be impacted will reduce, postpone or cancel investment, with nearly a fifth considering closing down or selling up.
More uncertainty for SMEs
Running a business is difficult in any situation, let alone when there is uncertainty with regard to your base costs. It's these overheads and any other costs that can cause a business to be unstable as it affects their cash flow. If any of your clients experience these problems you need to make sure it doesn't affect your business and credit insurance is a great way to go about it. A well managed credit insurance policy protects your company from your debtors not being able to pay you because of bad cash flow, caused by increased business rates perhaps…
CMR are here to help
We'd really appreciate the opportunity to answer any questions you may have, so if you would like some further information on how our managed credit insurance policy can benefit your company please call us on 020 8835 2587 or contact us via our website. You could also complete a Quick Quote if you would like to find out the price of a credit insurance policy for your company.