One of the most common difficulties currently facing many businesses is that creditors are trying to shorten their credit terms. In extreme circumstances we are seeing many credit terms being completely removed. Suppliers are wary of providing credit on the basis that they probably have had their fingers burnt due to the vast number of businesses going into administration. This doesn’t help the business which are left particularly when it appears they themselves are struggling to get cash out of their own customers. Banks are being very difficult when it comes to increasing overdraft limits  therefore in order to obtain sufficient working capital many business are turning to more flexible forms of invoice finance. Additional working capital is also being obtained by refinancing existing capital equipment.

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