According to statistics gathered by Asda over the summer, the average UK family has suffered from a significant drop decline in their capacity to spend. The Chief Executive of Asda, Andy Clarke, has made clear that in his view British families are experiencing a collapse in their living standards without recent precedent. The survey stated that average disposable income was almost 8 per cent lower than the year before.
At Cooper Matthews we are conscious of the fact that less household spending will be disastrous for a variety of good businesses. However, we are also aware that less difficult conditions may develop in 2012. The Centre for Economics and Business Research has mentioned the fact that inflation will probably decline next year. Hence companies should do everything possible to soldier on.
The debts which a company can run up are frequently of a complex nature. They are invariably harder to manage than the debt problems of an individual. It is imperative for an experienced practitioner to engage in thorough business debt analysis. They can chart the extent of the problems and calculate the best way of moving forward by weighing up the diverse options.
In current economic conditions, a small firm is more prone to accumulating debt. A large supplier may go bust or customers may simply be thin on the ground. However, a company financial difficulty need not kill off the prospects of a revival. If the appropriate steps are taken with sufficient care, a company recovery may well be possible.