Member Article

â??Act now to reduce bad debts', businesses told

Small businesses need to reduce their risk of exposure to potential bad debts before it is too late, a financial management service has warned. The credit crunch means high street banks are tightening up on their lending terms, which will mean difficult times ahead for the country’s small businesses, said e-bcm.

The company said although Bank of England governor Mervyn King had promised to inject money into financial markets to restore confidence, the business community had expressed fears that higher inter-bank lending rates and the knock-on effect of the credit crunch will lead to serious problems for small businesses.

Dennis Scott, e-bcm’s commercial director, said: “The current crisis is seismic and is shaking the financial market to its core. As many commentators have already noted, the full effects are yet to be felt in the consumer market but when the tsunami comes, it will have a major impact on the small business market.

“The message for SMEs is pretty clear: act now and you will save yourself a lot of trouble, toil and strife later on.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .