EBA Consulting Ltd

“Calamities are of two kinds: misfortunes to ourselves, and good fortune to others.“ Ambrose Bierce 

Tel: 01554 890300

Greater Risk for Directors

The security and personal guarantee position facing directors of smaller companies has taken another step forward in a landmark court ruling last month. In a case of Natwest versus Spectrum the High Court upheld the Brumark ruling governing the security the bank is able to take over the assets of a company to which it has lent money.

In effect this means the  bank which has taken security over the book debts can no longer be guaranteed payment from those debts if the company becomes insolvent. Consequently the bank will now stand behind the preferential creditors such as the crown and employees.

Some liquidators are refusing to pay banks for fixed charges on book debt. Banks are therefore increasingly turning to directors to honour personal guarantees, ones which directors may thought were safe as long as the book debts were collected.

There are appeal processes taking place which should give what appears to be legal confusion, some clarity to the whole position.

Funding a business now takes on new meaning and directors should be aware of the risks and possibly seek alternative methods.

We can perform a risk analysis and suggest/implement alternative funding packages - for further information visit our  Business Funding section or contact us at enquiries@ebassociates.co.uk .

Or alternatively if you need specific assistance you can  contact us now  with further detail.

It is vital  businesses, especially the SME sector gain access to key areas of assistance to help them in their development process.

Take a Hard Look at Your Business

Small to Medium Enterprises (SME's) should take a long hard look at their business to ensure they are extracting the best return on investment. Becoming complacent is a natural human phenomena, not doing anything about it, is commercial suicide.

Entrepreneurs who do not stand back and review all aspects of their business regularly, risk being overtaken by 'leaner and meaner' competition. Worse still not facing up to existing problems will ultimately lead to business failure.

Being in shape for 2004 will only be realised if the business is analysed and areas of concern identified with some clear strategy being put into place.

Often changes can be made for little cost, but the return on bottom line and perhaps more importantly cash flow can be improved significantly.

If you would like to receive a free tips sheet and some advice on how to approach the review including a business health check contact us by e-mail Click Here

Or alternatively if you need specific assistance you can  contact us now  with further detail.

The Challenge is on for Sales.

One of the big challenges facing SME's in 2004 is sales. Businesses cannot afford to stand still and rely on revenue coming in without any effort. Static or declining sales will inevitably mean the demise of the business.

Rarely do managers act quickly enough to arrest a declining situation. They either do not, or cannot reduce overhead costs to match the reduced revenue, or alternatively fail to put measures in place to increase sales. 

All this results in reduced profitably and inevitably a worsening cash flow position.

Attracting sales can be an expensive process.  However by investing wisely in marketing and focussing the sales efforts more effectively will result in significant benefits in a cost effective manner.

We experience these difficulties with many businesses but often solutions lie within, however it sometimes takes strategic thinking and business analysis to derive a way forward. 

Help is at hand just e-mail and we will put some suggestions forward Click Here

Or alternatively if you need specific assistance you can  contact us now  with further detail.