Business basics — answers to your common retail problems

Job reference
Question Am I obliged to provide a departing employee with a job reference?

Answer Contrary to popular opinion there is no obligation to provide references, except for those working in the finance industry. Where a reference is expected, it is now common practice to limit this to a simple statement of employment dates, job title and a description of duties.

Taking into account the number of recent, high profile and costly legal cases on the subject, most employers no longer comment on an individual’s competency or suitability for any future role.

Paying the rates
Question What action can I take if I am having problems paying my business rates?

Answer It is important that you do not ignore this demand. It is not unusual to ask your council’s rating officer about changing the amounts and dates of your payments.

If you can prove that you are suffering financial hardship, the council may help you towards claiming up to 100 per cent relief. You may also be able to claim this if your business is particularly important to the local community

If you own your property the council may agree to taking a charge against this for up to three years — this is a legal agreement that acts as its security. If this means that if you have not paid your rates in full before the property is sold, you will meet the debt from the money made from the sale.

Bridge that gap
Question I am the part-owner of three small but flourishing businesses. I have been told that the Government has approved establishment of an Enterprise Capital Fund which will help me to bridge our equity gap. I am not aware that I have such a gap and do not know what an Enterprise Capital Fund is. Please can you explain?

Answer When a company seeks investment below £500,000 the owners can most likely get financial help from friends, family and possibly banks and business angels. On the other hand, once a business needs funding of £2m or more it is usually quite established, and therefore seen as a lower risk, and able to secure funding from institutional investors.

The gap between these two financial situations is known as the equity gap or finance gap. The Government has a multi-million pound scheme — the Enterprise Capital Fund — to help businesses in these situations.