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Article Date:	18/08/2006
Article Title:	Cash flow provider advises on avoiding insolvency
An independent cash flow provider is advising business owners and managers to revisit basic principles in the wake of rising company liquidations. Figures released by the Insolvency Service in May for the first quarter of this year showed a rise of 17% of firms in England and Wales going to the wall. David Robertson, chief executive of Bibby Financial Services, said: “It is a sad fact of business life that some businesses will fail, and for those 3,439 companies forced into liquidation in the first quarter of this year, this must be put down to experience. But, with the acumen, finance and drive to succeed, following some basic rules may dramatically improve a company’s chances of success.” Bibby Financial Services is advising companies to plan and research their market, not to over expand and to set out credit terms clearly issuing invoices promptly. It suggests negotiating longer terms with suppliers but shorter payment terms with customers as a key way of avoiding running into business trouble. Arranging cash flow finance, streamlining internal processes, delegation and asking the help of external experts such as accountants are all highlighted as key steps to enable companies to survive.