Credit checking and financial management service e-bcm has warned channel firms to tighten up their credit lines to avoid a growing risk of bad debts.
e-bcm’s warning follows a report by market watcher Ernst & Young, that revealed there were just under 400 profit warnings from UK firms in 2007 – an increase of 10 per cent on 2006.
The organisation said the threat is particularly high for smaller firms as they, typically will be owed smaller individual amounts.
Dennis Scott, commercial director at e-bcm, said: “Small firms will usually be owed less than bigger suppliers in terms of individual amounts outstanding with any single customer but that does not mean they are less vulnerable. In fact, they are likely to be in a much more fragile position than larger firms that are able to obtain extended overdrafts with the banks. Most small businesses could not cope with more than two or three serious bad debts and with profits falling and lower levels of economic confidence, we’re likely to see many more businesses running into trouble in the coming year.”
Automation firms UiPath and Automation Anywhere close out their funding rounds with $265m and $300m respectively
View photos of last night's awards ceremony in London
View photos of all the winners from the 2018 Channel Awards
After a glittering awards evening in Battersea celebrating 25 years of the Awards, we are pleased to share the list of winners and judges' commended winners