An SME 'Access to Finance Research Report' published recently by the Institute of Chartered Accountants in England & Wales (ICAEW) held little in the way of surprises either in its findings or its recommendations. But it was nonetheless interesting.
One of the recommendations that particularly struck a chord with me, for example, was that 'SMEs need to display good financial management'. This is especially pertinent given the work that the Institute of Credit Management has been doing as part of the Doing Business Together initiative http://www.doingbusinesstogether.org/ and the need for greater transparency and clarity from all sides.
Whilst the report suggested that banks needed to do more to improve their relationship with the SME sector, it also concluded: '...well-managed, viable businesses with good track records have been able to obtain the finance they require........'. Such a statement will come as no surprise to those banks supplying the finance or credit professionals providing the trade credit!
I spent one afternoon this week with Roger Martin-Fagg, an economist, listening to his outlook for 2011 and beyond. Roger talks a great deal of sense and can support his arguments well. I was particularly pleased to find an economist who agrees with me that we're going to see a real surge in corporate insolvencies in the months ahead. I've been starting to feel I'm in a minority of one recently but perhaps not, after all!
His views on the difference between 'demand-pull' and 'cost-push' inflation are interesting too; we've got the latter in the UK and - for that reason - raising interest rates alone will not solve the problem. We watch with interest to see what happens next.
Feedback, positive or negative always welcome - use the response form or e-mail me at ceo@icm.org.uk.
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