Member Article

Prepare for spring economic recovery says insolvency expert

BREXIT, Trump…even with so many areas giving cause for concern globally, the indicators are that the economy is proving resilient and ready to spring to fresh life after a long winter.

Leading Sheffield insolvency expert Paul Moorhead says that the signs of a spring revival should be welcomed.

But at the same time he also says now is the perfect time to give corporate finances a vital spring clean.

“Recent insolvency statistics show that the number of businesses going bust has actually stabilised,” said Paul, of insolvency business turnaround company Graywoods.

“That does suggest that business owners may have good cause to be feeling a little more confident and continuing low rates of interest will help businesses to afford to borrow money where necessary.”

For some companies, however, the prospect of more months of trying to make the best of a bad situation may seem ultimately insurmountable.

But Paul says that by taking the right action at this stage, even the most troubled employer should be able to look forward to better trading as the economy continues its recovery.

“There are companies both in South Yorkshire and nationally that are on the edge and have really big problems but the longer they leave taking advice the more the danger they face of falling into terminal decline,” he said.

Paul explained that one of the most important things for any struggling company was to be realistic about long-term aims and prospects and then take appropriate action.

“As we come out of the recession there will be increased demand for goods and services and the survivors will find their market share increasing,” he said.

“But if you are staring at big problems right now it is not enough to hope and pray that things will improve and there are things that can be done to turn a business around, keep things afloat and prepare for the better times to come.

“Simply doing more of the same leads to more of the same problems so change the way you address those problems, the way you undertake your business and seek professional advice on how to contain a bad situation.

“By putting in place a strong turn around plan and tackling existing problems a company will be ready to grow and not still be struggling with historic debt when the competition is trading healthily again.”

To find out more about how Graywoods can help prepare companies for future growth visit www.graywoods.co,uk or call 0114 285 9500.

This was posted in Bdaily's Members' News section by John Highfield .