Are You Prepared As The Pound Weakens?
- November 11, 2016
- Posted by: admin
- Category: Company Blog
In our last post, we explained how we can help you deal with a european commercial debt dispute, but in early October, there was a dispute of another kind, as two of the world’s biggest companies locked horns in a battle over wholesale prices.
Consumer goods multinational Unilever revealed plans to raise prices by around 10% to compensate for the sharp drop in the pound’s value since the Brexit referendum.
But in an unprecedented move, supermarket giant Tesco publicly criticised the plans and immediately stopped selling Unilever’s major brands including Marmite, Persil and Hellmann’s.
The spat was soon resolved after crisis talks between the two, but the fact that it was made public highlighted the growing concern of even the biggest companies over Sterling’s weakness of late.
Bernstein analyst Bruno Monteyne told BBC news: “This isn’t about Tesco or Unilever, but about all UK retailers and suppliers.”
Sterling has dropped 16% against the euro and 19% against the dollar since June, with companies feeling the effects of higher bills for imported goods. So if you’re an importer who’s worried about the rising cost of wholesale goods, now is the time to ensure you have a plan B.
Cash flow is crucial to your operation, and if you encounter a Tesco-Unilever style negotiation with your suppliers or customers, it’s important you’re prepared to act should you talks break down and you need to recover any money you’re owed.
Our no-collection-no-fee debt collection service covers not just the UK, but Europe and the rest of the world too. So if you run into difficulties and need help with bad debt recovery, just get in touch.