The Institute of Credit Management (ICM), supported by Graydon UK, has launched a petition to prompt a government re-think on plans to exempt micro-business from having to file accounts at Companies House – a plan the ICM believes will seriously hamper the economic recovery rather than encourage it.
In a recent ICM survey, nearly 37% said that they would reject a relatively small order from a business with no accounts available and insist on cash in advance, and 48% said that they would ask the customer to provide financial data to support their application. Only 15% indicated they would accept the increased risk and trade anyway.
The findings support the ICM’s view that exempting micro business from filing accounts is wholly the wrong way of tackling what is a comparatively simple issue: businesses should be prepared to provide more information not less.
The ICM’s survey followed similar research in June from Graydon UK that showed 91% of credit and finance professionals believing the proposals would make it harder for small businesses to access trade credit, and 87% of respondents believing the Government’s plans would not help drive business growth.
If you wish to support the petition please add your details below:
