The crisis increases its effects on businesses

Impacts of the economic crisis on the financial health of companies and its impact on business failures

SME failures up sharply!

In the first quarter 2012, business failures recorded in France are up slightly over the same period in 2011. Indeed, they increased by 0.3%, exceeding for the fourth consecutive year the threshold of 16 000.

Thus, 16 206 judgments of bankruptcy or liquidation proceedings have been identified directly or 3,500 more than before the crisis.

SME with 50 employees and over who are most at risk with 27% more compared to first quarter 2011.

Moreover, in the first quarter, 123 companies of this size representing 19,800 jobs have malfunctioned.

In addition, 40% of them had more capital and nearly 80% had an operating loss.

The main problem is coming from a lack of cash.

It is even more essential for every business to become more professional in managing its accounts receivable to avoid being impacted by bad debts and late payments.

Use Credit tools to acquire the methods and tools to manage your receivables and improve your cash flow!
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