Business owners need to sort out finances
Owners of small companies are being urged to take stock of their finances to help ensure their survival following the news that the Bank of England had recorded cash balances held with banks had dropped for the first time in ten years.
In the week that sees the one year anniversary of the term "credit crunch", legal firm Mace and Jones has warned companies not to rely on finance from banks for survival. Insolvency partner Dominic Vincent recommended that owners look at their own financial situation as soon as possible in order to protect their livelihood.
"As the Bank of England figures show, both businesses' and banks' finances are under pressure," he told bytestart.co.uk.
"This is bad news for small businesses and there is an urgent need for firms to tighten their belts and their credit control systems.
"The next six to eight months could be a rough ride."
The FSA (Financial Services Authority) also recently called for banks to be more prudent, while the Government is placing pressure on them to increase mortgage lending, both of which will mean a squeeze for small businesses.
