Small firms urged to maintain cashflow during recovery
Commercial insurance
18th June 2010
In spite of many companies waiting to learn the details of the Chancellor's forthcoming emergency Budget, small and medium-sized enterprises (SMEs) have been urged to keep cash flowing.
Bibby Financial Services has issued advice to such businesses, suggesting that although there is uncertainty in the market, "firms must not forget that business must go on".
Its chief executive Edward Rimmer warned that cuts to public sector services "could have negative ramifications for those businesses which are dependent on public sector contracts", which may require them to make cuts or introduce rationalization processes.
Additionally, plans to raise VAT might also have a significant impact on SMEs' operations, but it is important to focus on liquidity at the moment, he said.
"Taking steps to improve cash flow can reap considerable benefits during these unpredictable times," Mr Rimmer added, something that may be of interest to those seeking insurance for business.
Chancellor George Osborne will deliver the new Conservative-Liberal Democrat government's emergency Budget on June 22nd and the Federation of Small Businesses has called on him to "think small first" in order to assist SMEs during the economic recovery.
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