Financial executives expect a recession, but are unprepared for it

by • June 11, 2020 • SME LoanComments (0)186

Survey Finds Financial Executives Expect A Recession But Many Are Unprepared

  • Financial Executives who responded to the survey are making broad spending cuts with traditional spend management solutions, which may make navigating a recession difficult
financial executives

Survey Finds Financial Executives Expect A Recession But Many Are Unprepared

On June 10, Coupa Software announced the results of a global study of chief financial officers and senior financial executives that found the majority (87 percent) of respondents believe a recession is likely, with more than half (53 percent) expecting it to last six months or longer. However, as these leaders grapple with the idea of a looming recession, the results show that their current preparations might not be enough to navigate through what’s coming.

During good times, businesses prioritize top-line growth, but in a downturn, the focus quickly shifts to profitability, putting pressure on a company’s spend management strategies. A survey of more than 650 global financial leaders uncovered that companies may not have the right spend management strategies in place and could be leaving room for error when making critical business decisions.

The survey found that:

  • 56 percent of respondents state their top concern today is financial risk
  • 70 percent of respondents are containing costs by making broad or departmental cuts over the next 6-12 months
  • A majority of them (76 percent) are reliant on traditional or outdated methods to manage their business spend
  • And only 23 percent are using a single, unified spend management solution to manage their business spending
  • 83 percent are concerned about the health of their suppliers or their suppliers’ suppliers

“The results of this survey are eye-opening, and illustrate the critical importance of ensuring that finance teams have the spend visibility and the supplier insights they need to make the right decisions and establish the right controls with confidence,” said Rob Bernshteyn, chairman and CEO of Coupa. “With uncertainty likely to continue, now is the time for companies to adopt a comprehensive solution to build business spend resilience for any market condition.”

Preparing for a Recession
To build resilience with your business spend, organizations must:

  • Invest in the Right Technology: Choose a technology solution that provides a comprehensive and unified suite of cloud applications, providing the visibility and control of all transactions across the company.
  • Build Strategic Relationships with Suppliers: Understanding the health of your suppliers is critical in uncertain times; both the performance and the risk of each supplier can have a significant impact on your company’s spend. When the hard times end, you will need these suppliers to help get your business back on track.
  • Focus on Future Agility: While many companies are still in survival mode, the smart ones will have one eye on what happens when the economy recovers. Businesses need to be ready to quickly bring on staff, increase ordering of goods, and overall, increase productivity. These changes will need to happen fast, so plan for them now.

Survey Methodology
This survey analytics report conducted by Sapio is based on a survey of 667 senior finance decision makers from companies with 500-plus employees based in the US, UK, FranceGermany, and ROW (ArgentinaCanadaIndiaMexicoSingapore, or South Africa). The survey was sponsored by Coupa and conducted in May 2020.

About Coupa Software
Coupa empowers companies around the world with the visibility and control they need to spend smarter and safer.

Mr Paul Ho, chief officer at iCompareLoan, said: “Financial Executives and business owners sometimes think that it is odd to borrow money when you have already got personal savings.”

“But you saved that money for a reason — perhaps to fund children through education or provide for your retirement. It is unwise to rely on such cash in a recession,” he added.

Whatever that reason is, if you tie up that cash in your business, it’s not available for the original purpose. Taking out credit for your business offers a number of benefits and can improve your chances of commercial success.

Most financial institutions and non-traditional lenders disclose their minimum requirements for lending. If you meet a lender’s minimum qualifications and want to see estimated rates and terms, you can pre-qualify for financing. But pre-qualification is not the same as putting in an application for personal loans. You may pre-qualify for a loan and yet your loan application may be rejected once you put in a formal application – and the more formal personal loan applications you put out, the more the impact is on your credit score.

This is one good reason why you need to work with trusted loan specialists like those at iCompareLoan. Our Loan specialists are able to not only pre-qualify you with multiple lenders and compare rates and terms, they are also able to get you the best personal loans which has costs and payments that fit into your budget.

To lower the cost of borrowing, try to convince your lender to give you a better rate. You should negotiate with your lender and they may be willing to cut the interest rate to secure your business, and so the loan will cost you less. If you are uncomfortable about negotiating, you should engage the services of a loan specialist.

Loan specialists will not only be able to negotiate a better rate for you, they will also be able to help you compare the best personal loan offers from among the different ones given by the many banks. It also makes sense to engage loan specialists because their services are usually free. Loan specialists can set you up on a path that can get you the best personal loans in a quick and seamless manner.

Pin It

Related Posts

Simple Share Buttons