The ‘double bank holiday’ could cause cashflow problems for UK companies, warns IGF, one of the UK’s leading independent commercial finance companies. Cashflow could suffer over the two long weekends as many finance staff and signatories (company directors) will be bridging the two four- day weekends courtesy of the Royal wedding and Easter by taking holiday for the intermediary three days, creating a mass absence from work for almost two working weeks.
Small businesses should consider invoice finance – effectively, a cash advance on all invoices raised – to enable them to meet the challenge of any potential cashflow problems that arise over the Easter and Royal bank holiday period.
Tracy Ewen, managing director at IGF, warns:
“The Royal wedding could cause a right royal headache for UK SMEs! This unusual double bank holiday weekend that has come about thanks to the Royal nuptials could become a critical time for small businesses. A significant number of managing directors, clerical assistants and finance department staff may in fact take the opportunity to bridge the two weekends together to enable them to have a longer holiday. Payments will slow down which could cause real cashflow problems. There is a real risk that payments won’t get made, cheques won’t get signed and small businesses will experience real problems with cashflow over this period.”
“During this regal period of lavish celebrations and street parties, many business owners will have to resort to costly bank overdrafts to see them through, or, worse still, the company credit card- both of which can exacerbate their weak cashflow positions in the short term.”