There is no doubt the high street has seen constant changes over the years. The demise of the high street grocers, butchers and fishmongers with the arrival of the supermarkets and our local banks swallowed up by bigger banks. But now we are seeing a new change as those large multiple retailers are facing what some call “the perfect storm” A combination of lack of consumer confidence plus most have purchased those big-ticket items.
When the large retailers call in the administrators there are multiple casualties down the line. That glistening promise of large regular orders from a well known high street name suddenly can become those large unpaid invoices from a well know high street name
There are some simple steps to take and ibd have advisers well versed in the retail sector as well as debt recovery if it’s gone that far
- Be wary of large orders coming your way – Has another supplier put the company on stop?
- Look very carefully at all the contract. Many will have hidden charges, marketing allowances, write-downs, 100% returns all of which will affect your bottom line
- Think carefully about the percentage of turnover that as a business you could afford to suddenly lose. There have been stories of supplies with 80% of their business locked into supplying a single company.
- Ensure your invoices are paid on time and consider factoring some invoices. Be ruthless in stopping supplies if payments are not made in agreed terms
This is not just a UK issue but it’s affecting parts of Europe as well
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