Planning for uncertain economic conditions
I'd like to open an account
Whether you are starting a new business or moving your existing account from another bank we have an account to suit your needs.
Call us on
0800 022 4388
Lines are open 8am to 8pm Monday to Friday and 9am to 1pm Saturday.
Request further information
(opens in a new window)
Fill in a request form to receive more information before you apply.
Today’s business environment is undoubtedly challenging, especially with the current economic slowdown. At times when the market is less buoyant, business owners need to identify potential risks and review their business processes to help them weather the economic storm.
What are the risks?
One of the main pressures business owners are currently facing is an increase in costs. If this is followed by a slowdown in trade then competition will become increasingly aggressive. If you provide trade credit to struggling businesses, you could be left with bad debts if debtors can’t pay. During these difficult times it’s critical to review your business productivity and efficiency, monitor your cash flow and plan ahead.
Ten ways to prepare for an uncertain market:
- Choose who you do business with – When you deal with new businesses, think carefully about who you do business with. Check your customer’s track record before offering credit, or ask for payment up front.
- Don’t put all your eggs in one basket – Spread your risk and don’t become too dependent on one customer.
- Keep your customers satisfied – With fierce competition between businesses, good customer service is more important than ever. Concentrate on retaining your existing customers, and keeping in touch with old contacts, as well as appearing attractive to prospective customers.
- Monitor your cashflow – Raise invoices promptly, chase any outstanding payments immediately and keep a safety margin in your account or facilities.
- Review your finance options – There are many sources of finance available. Make sure you have the right mix – consider both asset and equity based finance.
- Cover your risks and make savings – Consider fixing your rates to make it easier to predict future costs. Look at ways to be more efficient and reduce unnecessary expenditure.
- Review your investment plans – Are they still appropriate for your business at this time?
- Involve your staff – It is vital that staff are aware of any changes you make to your business. This will help motivate them during uncertain times.
- Be prepared and plan ahead – Good forward planning, including contingency testing, will help safeguard a business’s performance during an economic slowdown. Review regularly how your business is doing.
- Work closely with your bank – Keep in close contact with your bank, accountant and solicitor. They can be great sources of support and guidance for your business in both good and more difficult times.
For further guidance and support, Lloyds TSB Commercial can help find the financial solution to match your needs.
