Cross Border Commercial Finance Open Doors for European Businesses

Overview of trade debtor and cash flow issues affecting European businesses along with use of commercial finance.

(PRWEB) July 9, 2007 -- According to recent figures, average payment arrears throughout Europe now stand at 53 days. When supplier terms are taken into account from low-cost areas such as the Far East and Asia, the funding gap for businesses can extend well beyond 120 days. This can cripple cash flow for European businesses which can have a negative impact on profits, expansion and their overall existence.

Tracey Davenport, Relationship Director with a leading European commercial bank, encounters this on a daily basis. 'You're seeing shorter payment terms and longer terms for debts remaining unpaid throughout the UK and Europe. One of the biggest assets for most businesses is their trade debtors. With businesses expanding their markets every day, companies are looking to leverage their entire asset book to aid their business plans going forward.'
    
He continued by saying businesses which are expanding rapidly or struggling with managing cash flow need to consider this option or risk being passed by the competition. 'The old adage ‘Cash is King' has never been truer -- when a business is fully leveraging all their debtors, they are in a position to negotiate better supplier terms along with reducing other financial obligations putting the company in the position to expand and grow,' Davenport said.

He went on to add that many factors are driving companies to outsourcing their European accounts receivables. Pending Basel II regulations have made commercial banks more alert to risks. When providing credit, commercial banks are attaching increasing importance of proper risk management by companies throughout Europe.

'The bottom line is 25% of unpaid bills are never collected. Managing Directors with growing businesses who are expanding their markets are using cross border commercial finance to get ahead of the game.'

If your European business could benefit by a discussion with Tracey Davenport, he can be contacted at +44 (0)7824 311 228. Tracey has worked extensively with businesses throughout Europe and the USA providing a range of commercial banking services including asset finance, trade finance and cash management solutions.

www.fortisbusiness.com

Press Contact: Tracey Davenport
Company Name: Fortis Bank
Email: Email Us Here: http://www.prweb.com/emailmember.php?prid=538412
Phone: +44 7824 311228
Website: www.fortisbusiness.com

Press Release Source: EMediaWire