Uncertainty over the outcome of the forthcoming General Election could have a serious impact on business finances, a leading insolvency practitioner is warning.
Paul Moorhead, director of Rotherham-based Moorhead Savage, said companies that depend on government contracts in particular could be badly affected over the next few weeks.
He said: “Organisations working in that area may well already be having difficulty getting those contracts agreed and getting necessary funding in place, which could have a seriously detrimental effect in the long term.
“Investment decisions are not being taken and people are generally being quite cautious about business in the run up to May 7. That uncertainty only grows when there is a possibility of a coalition and nobody can predict what form that coalition will take.”
“But if businesses are being cautious with their cash and delaying buying new equipment, for instance, then there starts that whole serious knock on effect as the problem begins to spread and even when the election is out of the way it will still take quite a while for businesses to get back on track.”
Mr Moorhead added fears about cash flow need to be dealt with as quickly as possible. He said: “My advice is always the same – seek help now when you can see the possibility of things going badly. By making sure you have the best possible opportunity to manage the process and ensuring you have taken control of the situation before it becomes a crisis, the crisis should be avoided.”
For more advice ring Moorhead Savage on 01709 331300.