Cashflow will remain a large problem for business even once the worst of the economic crisis has passed
Cash flow remains a key issue with payments and late payment activity having a large effect on individual businesses and entire sectors, with some businesses cutting back on payments to suppliers until the crisis has passed. This will be a huge issue not just in the near term, but also in the long term. As without shoring up the delivery of cash across the economy many more businesses may fail, and this could constrain competition and growth as the economy recovers.
To create a healthier business environment that is more resilient will mean businesses taking a more partner centered approach to their suppliers rather than a transactional one, with a changed view of risk. One where risk is seen as a whole supply chain issue rather than just a risk to a single business in isolation. Businesses will therefore need to act accordingly, supporting their partners to in turn support themselves.
Digital tech has not only helped us adapt, but opened our eyes to new ways of collaboration.
Many more UK businesses will be using cloud computing and digital solutions in order to continue operating during the crisis. This impetus for digital adoption must not be lost during the recovery and we need to ensure that the new normal means being more willing to leverage the benefits of these technologies.