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The poll commissioned by R3 the Insolvency trade body the shows that during 2009:

• One in three workers have worked overtime or longer hours without extra pay;
• One in ten have deliberately not asked for a pay rise in view of the recession;
• One in ten have taken unpaid leave;
• One in ten accepted a pay freeze;
• One in ten did not receive a bonus that they expected to receive;
• One in two people who work have taken at least one of these actions.

Insolvency Practitioners think these actions can play a key role in helping a company prevent insolvency. 42% of R3 members believe these activities can be the ‘magic bullet’ to help save a failing business and 91% think they can be helpful as part of a package of measures.

According to press reports, the following companies all asked staff to make personal sacrifices to secure the company’s long term future:

Honda: In August, Honda’s Swindon factory announced it was closing down for a four-month break – staff were asked to take a cash payout to leave and those who remained were paid in full for two months and at 60% for the next two months.

British Airways: British Airways pilots accepted 2.6% pay cuts. In return, they received shares in the company in three years time worth £13m. Also at BA, 7,000 staff agreed to take part in cost-saving measures, including 800 who said they will work unpaid for up to a month. Most opted for unpaid leave.

BT: BT said they would give staff an upfront sum of 25% of their annual salary in return for taking the entire year off. Staff were also given the option of a one-off payment of £1,000 for going part-time.

KPMG: asked its staff to move to a four-day week or take sabbaticals on 30% pay, to stave off a redundancy programme across the firm.

McGrigors: the Scottish law firm which employs 700 people across the UK, asked staff to take two weeks off without pay between June and the end of its financial year on 30 September. Salaries across the firm were frozen until October 2010.

Wragges: the law firm has seen more than 20 associates take up sabbaticals and extended maternity leave as the firm attempts to avoid the need for further losses.

Gleneagles, owned by Diageo Plc: sent letters to 700 employees in January asking them to consider voluntary severance, unpaid leave, reduced working hours or early retirement.

Thorntons: offered sabbaticals and shorter working weeks.

Esh Group: Top executives at one of the region’s largest private businesses have taken a 30% pay cut.

Leyland: announced 250 job losses and an extended factory shutdown over Christmas 2008 because of a “severe decline” in demand.

According to the CBI, nearly two-thirds of employers are operating some form of recruitment freeze and 45% have introduced more flexible working

Its very important to remember that employees are one of the most valuable items within a successful business and even though cash flow is often tight within a recession  it often takes some lateral thinking by business owners and Directors to structure a business recovery strategy, whilst still trying to retain your skilled and valuable work force.

Manufacturers’ association EEF said the move was “too timid”, and that the Bank should have cut rates further.

The Bank has now reduced rates four times from October’s 5% level. A further cut had been widely expected by analysts, particularly after the minutes of December’s MPC meeting revealed the members of the committee had considered an even larger cut than the 100 basis point reduction they eventually voted in favour of.

Most mortgage customers with tracker deals will automatically have the cut in interest rates passed on to them by their bank or building society. Customers with an average £150,000 repayment mortgage will see their monthly bill drop by £46. Those tracker deal customers with a £250,000 mortgage will see their monthly payments drop by £76.

With rates currently at 2%, the Bank’s Monetary Policy Committee is tipped to announce a reduction of between 0.5 and one percentage point.

A Mortgage Industry Shadow Monetary Policy Committee, has voted for a 1% cut in the Bank of England base rate, which would bring the rate to the lowest it has ever been since the Bank was established 314 years ago.

First of all, we at Enable Finance would like to wish you all a very Merry Christmas and a Happy New Year.

Opening Hours:

Sales Enquires: are Closed on Christmas Eve, Christmas Day, Boxing Day, New Years Eve and New Years Day.

Administration and Underwriting: will close at 5pm on Friday 19th December and will reopen on Monday 5th January 2009.

A lack of working capital can impact massively on a business and poor cash management can often lead to arrears or late payments to creditors such as HM Revenue and Customs. Not paying the VAT quarter or holding back payments of PAYE can sometimes seem like the only way to fund a cash flow problem, however, you really should be mindful that this is not a good idea and could even lead to the business being wound up.

Asset Refinance can be one way to utilise the assets held within a business as part of a working capital strategy moving forwards. The corporate Finance team at Enable Finance will give business owners and Directors free advice on whether this solution could work for your business.

For more information about Asset Refinance please speak with:

Phillip Evans – m. 0797 0500 425 or apply on line

The last cut, an emergency 1.5%, was intended to stimulate spending and stave off recession but the economy has continued to suffer.

The CBI said it was “critical” that banks now passed on the reduction to businesses and other customers. While banks are expected to cut the interest they pay on their savings accounts, no decisions have yet been made. HBOS has committed to passing on the full cut on all tracker products while other lenders have yet to reveal the action they will take.

The Royal Bank of Scotland said it would be passing on the cut in full to its small business customers. Lloyds TSB/Cheltenham & Gloucester said they would be passing on the rate cut to small business and mortgage customers, while HSBC and Skipton said they would be cutting their standard variable mortgage rates.

Lloyds TSB has promised to pass on in full any further reductions in base rates in 2008 and 2009 to small businesses as part of a six-point charter for SME customers to help them weather the current economic downturn. It will also maintain overdraft limits and overdraft margins at existing levels for businesses with a turnover of up to £1m.

However a rapid deterioration in business conditions since the first significant rate cut has raised fears Britain could be heading for a much deeper downturn than had been previously thought.

Despite the above statement from Lloyds TSB, businesses have reported continued restrictions to bank loans, mortgage lending has slowed, unemployment has risen, consumer confidence has fallen and shops have slashed prices to attract customers in the Christmas shopping season.

The feedback we have had from businesses is still a feeling that the banks are putting out statements and saying they are lending when they are not. Business really needs cash flow finance to work through this economic downturn.

Adrian Bloomfield, CEO of the ASTL, says: “It has been brought to our attention that there is an improper and dishonourable practice whereby firms appear to be charging applicants very substantial application fees in relation to short term loans that do not materialise.”

None of the members of the ASTL have been implicated in these allegations and no complaints have been made to the ASTL about any of its members. Bloomfield says: “We wish to make it clear that the short term lending industry as represented by the ASTL condemns these sharp and dishonourable practices and our members wish to disassociate themselves from the companies against whom complaints and allegations have been made.

Enable Bridging Finance safeguard the interest of their clients and only introduce loan applications to lenders who they know are reputable and reliable.

Arbuthnot Commercial Finance was an independent factoring company based in St Leonards-on-sea, East Sussex.The acquisition, which was completed on 31 July, brought a wealth of experience and around 100 clients into the Bibby Financial Services Group.

The combined business will operate under the existing Bibby Factors Sussex company name. Roger Taylor, the current managing director of Arbuthnot Commercial Finance will head up the joint business as managing director, supported by Sue Duckett, operations director and Andy Leopold, sales director.

Operating from its new premises at Lacuna Place in Hastings from early January 2009, the team will continue to provide cash flow solutions to small to medium-sized businesses across the Sussex region.

For an Invoice Factoring Quote please call 0800 316 1612 or follow the link to apply online