09-10-2007
Credit squeeze may impact on all businesses
News from Simply Business - independent providers of business insurance, business finance, landlords insurance, buy-to-let mortgages, commercial mortgages and information for small businesses.
The emerging credit squeeze is likely to make its impact felt by all businesses, it has been claimed.
According to comments made by Matt Thomas, editor of Startups, the effects of the current tightening of credit will potentially mean that some businesses fail as a consequence of market conditions.
"I think the unfavourable economic climate is likely to have an impact on every business," said Mr Thomas. "Conditions [like this] always sort out the stronger businesses from the weak and if a business is stronger, it will rightly go on to profit," he added.
Indeed, the results of data released by Natwest has found that, of those businesses which have emerged over the last five years, a total of 23 per cent are considering closing their enterprise - cash-flow problems were reported as being an issue.
Mr Thomas also suggested that a business might find itself less vulnerable to current conditions if they embark on a process of restructuring.
Planning to cope with any change in the economy is vital for a small or medium sized business.
Getting comprehensive insurance is a good start.
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