Some of your business clients may be feeling the pressure more than others. Sectors like manufacturing, engineering, farming, retail and wholesale are being hit hard by rising costs, global competition, and new trade deals.
Can your manufacturing and engineering clients handle a 10% increase in costs?
How will your farming clients cope with even more pressure on prices?
Will your retail and wholesale clients survive if overseas competitors flood the UK with cheap stock?
These industries are likely to be most affected by upcoming trade changes and US tariffs. Business owners in these sectors are worried, and they’ll be looking to you for guidance.
Now is the time to step in and help them prepare for what’s ahead.
What is the impact of continual trading turbulence?
We’ve had multiple trading shocks over the last five years. Businesses which were once resilient with strong balance sheets are now working with less cash resources & much thinner margins.
According to research from Bain, there are more dramatic swings in times of turbulence than during stable times.
There are 89% more “sinking ships” but, for those companies who are strategic, there are 47% more “rising stars” too.
Standing still is not an option if you want to be one of the winners, not losers.
How you can help your clients be the “Rising Stars”
1. Create a cash safety net
Larger corporate businesses always go straight to the markets to obtain more cash, when the months ahead look rocky. We saw these trends pre-Covid, a second wave with the onset of the Ukraine war and again now.
This gives the Board confidence to make the right decisions for the company in the medium & long-term, rather than being restricted and panicked when there is no cash and the business is approaching crisis.
Suggest to your clients that you help them review the market for. additional funding sources and credit lines, available to draw down now, or when they need it.
2. Expand their supply chain with great credit terms
Whether it’s the price of steel, oil or consumables, all imported goods are likely to see an increased price again eventually.
Having more supplier relationships means that your client can shop around to get the best price.
Suggest to your clients that they ensure they have the strongest credit score possible (use the Credit Review Service) then approach new suppliers and agree more trading terms.
3. Track customer risk
Many companies will hit the buffers over the next few months and you don’t want your client suffering bad debts.
Credit scores are the fastest way to spot if a company is in trouble, way before the administrators or liquidators are called in. A business credit profile will highlight declining payment performance, such as increasingly late payments to suppliers, as well as any legal notices like County Court Judgments (CCJs) or Gazette notices, which are early warning signs of financial distress.
Your clients can see all of this information on a Capitalise for Business account. Encourage your clients to track their customers’ credit scores and prioritise credit control for companies which start to decline.
How we can help you
Capitalise works in partnership with you, so you can help your clients. Your Capitalise Partnership Manager can:
Help you identify which clients need help the most
Support you through funding applications to over 100 lenders
Provide the process to access the Credit Review Service
Contact them directly, or email partner.support@capitalise.com.
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