Articles in January 2012
According to The Independent, Facebook is ready to file a prospectus for its flotation, if the board gives the go-ahead. The Internet giant hasn’t so far hired bankers to market its shares but instead has been making its own preparations.
The economic crisis of the past years has particularly affected small businesses which depend on bank loans. While larger companies can obtain the necessary cash in the financial markets, small business owners have to deal with high interest rates imposed by banks.
There are a number of common misconceptions concerning credit scores and lending practices of companies. A good or bad credit score is a real make or break factor when it comes to entering business agreements as the director’s and company’s financial behaviour and debt payments determine the credit rating of prospective partners as well.
The figures released not long ago revealed that nearly 45 companies went bankrupt every day when the credit crisis hit the markets. The Insolvency Service informed that during the first months of 2011 the number of liquidated companies grew up by 2% as compared to the same period a year earlier.
The European debt crisis is predicted to dominate 2012, while British economists warn that the UK will likely slip into recession already in the first months of the New Year despite a slight increase in the national economy in 2011. In times like these, conducting business with financially unstable firms can lead to detrimental consequences for both parties.
As part of the new CARD (the Credit Card Accountability Responsibility and Disclosure) Act of 2009, credit check agencies advertising free company reports are now required to clearly disclose that what's being marketed isn't the free credit report you're entitled to receive by law.
According to Susan Thomas, spokeswoman for credit bureau Experian, company reports matter to enterprises “because lending decisions are based on them”. And this is not the only reason for the popularity of online credit checks with modern businesses.
Over 50% of Britain’s leading experts are forecasting a technical recession in 2012, and nearly 70% of those forecasters expect it to last the whole 12 months. Conducting business with unknown partners in times like these can be a very risky decision as even companies that seem financially viable may have serious problems.