It is impossible to tell what the future holds for the struggling British economy. The Chancellor George Osborne has announced a policy of credit easing. In a few months, this measure might begin to make a positive difference to the situation. Other measures like the freeze in council tax might permit consumers to spend more. However, much depends on the implementation of the credit easing plan and on external economic conditions.
At Cooper Matthews, we know just how hard the economic climate is out there. Whether or not the credit easing is well thought out, it is quite possible that a double-dip recession may occur. The growth forecasts have been revised downwards on several occasions and the international economy is in an awkward patch. It has become routine to maintain that there is a leadership deficit affecting the United States, the Euro area and Japan.
In these difficult conditions, the number of distressed companies is likely to increase, whether or not the economy officially enters recession again. Business debt is seldom caused by the actions of firms because it normally reflects external conditions. However, if a company is suffering from severe company debt problems it does not mean that it should give up. If its directors act swiftly and appropriately the company’s future may well be saved.
A professional insolvency practitioner has the experience and expertise to assist a company in considerable difficulty. A company cash flow problem need not mean that there are not diverse solutions out there to be explored and implemented.