Jump to MenuJump to Main ContentJump to the SidebarJump to About A&T Business AssociatesJump to How A&T Business Associates are DifferentJump to How A&T Business Associates WorkJump to Our LinksJump to our Industry NewsJump to Legal InformationJump to Viewing OptionsJump to SearchJump to Site MapJump to Contact Page

What is the answer to HMRC winding up petitions hike?

New figures show a significant hike in the number of winding up petitions issued by HMRC. Alternative finance is vital to helping SMEs avoid falling into this abyss.

According to new data from HMRC, the number of winding up petitions it issued in 2015 rose by 13%, with 3,074 businesses threatened with closure because of unpaid tax bills. The hike underlines the problems faced by companies, especially small businesses, in terms of managing cash flow. Plans to slash corporation tax may alleviate some of the pressure, but there are plenty of other demands on working capital.

Aside from tax bills, small business owners are also contending with the costs of auto-enrolment, cybersecurity and the National Living Wage. In an uncertain post-Brexit economic environment, these costs are squeezing SMEs hard.

So how can SMEs survive and thrive? Alternative finance is part of the answer. Small businesses that are under pressure in terms of cashflow management can turn to services such as invoice finance and asset finance to help them pay bills and maintain forward momentum. Start-ups and small businesses can also access funding through peer-to-peer lending and crowdfunding.

With traditional lenders unlikely to drop their cautious approach to small business lending in the post-Brexit marketplace, it has never been so important for SMEs to fully explore all the funding opportunities available to them, including alternative finance.

Small business owners have a responsibility to show initiative in terms of identifying appropriate funding services, but at the same time, the government has a duty to raise awareness of the full range of options. By doing so, a further rise in winding up petitions can be avoided and the SME sector can grow.

To find out more about A&T Business Associates services, contact us on 01903 602211 or info@atbusinessassociates.co.uk.

Return to the News Page