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ICM welcomes FSB report on mentoring scheme

21 October 2010

Involvement should be backed by all businesses, not just banks

The Institute of Credit Management (ICM) has welcomed the Federation of Small Businesses (FSB) report on the national mentoring scheme aimed at helping start-up and growing businesses flourish, but urges that it involves all businesses and SME experts, and not just banks.

The ICM firmly believes that professionals with the day-to-day experience of running small businesses, especially those who understand how to manage cashflow, should be directly involved in the mentoring scheme.

Philip King, Chief Executive, ICM, says that while he applauds the FSB’s direction for the mentoring scheme, the scope needs to be widened: “We need experts who can provide start-ups with real-life experience and who truly understand the issues they will face,” he says.

“Credit managers and ICM members who are already mentoring within the business community are expertly placed to provide practical assistance and raise awareness of business critical issues before they arise.”

The report states that around two-thirds of all start-ups fail within their first year, something credit management mentoring may help to avoid, as Philip explains: “There is a direct link between new businesses failing and cash running out.

“Proper, professional credit management advice, practical assistance and literature such as ‘Managing Cashflow guides’, which the ICM produced in conjunction with BIS, can go a long way to securing the future success of our growing SME community.”