EBA Consulting Ltd

"A conference is a gathering of important people who singly can do nothing, but together can decide that nothing can be done."  Fred Allen (1894-1956)

Tel: 01554 890300

The Enterprise Act

Changes to the Insolvency Act 1986, came into force on 15th September 2003 as amended by the Enterprise Act 2002, which will have an impact on small and medium-sized enterprises (SME’s) across the UK . The Government has set out to introduce reforms to reduce the stigma of business failure and encourage enterprise together with a new culture for rescuing businesses that encourages entrepreneurship.

The focus is on the ability to rescue companies as going concerns at the same time treating the creditors fairly.

There are three key areas which go towards upholding these aims:

• Administrative receivership is largely brought to an end for holders of new floating charges.

• The Crown (Inland Revenue and Customs & Excise) are no longer preferential creditors in insolvencies.

• The administration provisions of the Insolvency Act 1986 are repealed and replaced with a new set of provisions.

If the company is experiencing difficulties and creditors are pressing then an administration can protect the company while it is restructured giving the Directors and managers more time to ensure the best possible outcome for all.

If you need assistance with this contact us now before it's too late

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

Late Payment  

Late payment of invoices is still a major problem throughout the UK . Businesses are taking on average 5 days longer to pay than they did 5 years ago. The legislation introduced in 1998 has had little effect in combating this problem, the average debtor days are now standing at 57.9 days. This statistic emphasises the need for companies to take their own measures to ensure prompt payment within the agreed terms. Cash flow is the life blood of any business. Regardless of performance in terms of profitability, quality and service, if working capital is poor then most areas of the business will suffer. Credit control is an essential part of business discipline and having the correct procedures in place will help to maximise the collection process. Alternatively as discussed in last months newsletter (September Newsletter) sales ledger finance can give businesses support in this area.

If you need assistance with this contact us now before it's too late

Red Tape

A handbook on how local authorities and businesses can work together to help reduce the burden of red tape has been published by the Department of Trade & Industry (DTI).Red tape always figures highly in small firms' lists of complaints and the guide is part of the DTI's campaign to help them comply more easily with the often-complicated regulations. Small business minister Nigel Griffiths said that "the guide provides a means for ensuring regulations are implemented in an even-handed, proportionate and consistent manner." He believes it will help small businesses by "making it easier to comply with regulations".

For a free copy of the guide, call the DTI publications order line on 0870-150 2500 quoting reference URN03/998.

If you need assistance with this contact us now before it's too late