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When businesses are on the edge

The pandemic has surprised everyone, leaving self-employed, small, and medium-sized businesses exposed the most to the liquidity issues.

A quarter of the businesses surveyed by the ONS confirmed that they had to close trading. The Enterprise Research Centre, has noted 70% higher number of companies failing this March compared to last.

With over half a million businesses reported to be in a significant financial distress, the official forecast predicts a 35 per cent drop in economic activity over the next three months.

Small firms hit the hardest

Companies with access to funding and healthy resources will be able to restructure and survive in the current climate.

For others, especially smaller businesses, the uncertainty of the next 18 months and the lack of financial liquidity will be the biggest challenge.

Don’t delay seeking help

The number of businesses in critical distress is growing at an exponential rate. With creditors and the courts are temporarily scaling back on enforcement action, directors should stay aware of their fiduciary duties and seek help as soon as possible.

Our business turnaround and insolvency specialists are on hand to provide advice & assistance during these unprecedented times. If you need help with understanding your options or with planning the future, please give us a call on 📞0800 118 2948.

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