ICSM Credit warning over cash flow problems for UK firms as coronavirus causes economic slowdown

It’s impossible to miss the coronavirus story with global blanket coverage in the media and Governments issuing ever more stringent action to combat the outbreak.

To many there is too much hysteria about the flu like disease but whatever you think it is having a severe effect on business. From schools closed in Italy and trade shows cancelled in Germany the disruption to industry is already being felt around the world. In the UK as the virus continues to spread it is causing panic in some quarters and imports from China to slow down.

Ian Carrotte of ICSM Credit said the sudden economic slowdown will have a knock-on effect within weeks. He said: “Unfortunately when business slows the fixed costs of wages, rents and utilities continue as before leading to cash flow difficulties. I cannot stress enough the need to be tight on credit control. As we’ve seen with Brexit some firms will give a sob story about why they cannot pay their suppliers’ invoices and blame it on the virus. In the coming months it is certain that the coronavirus effect will lead to problems and it could cause some businesses to fold.”

For details about ICSM Credit call 0844 854 1850 or visit the website www.icsmcredit.com or email Ian at Ian.carrotte@icsmcredit.com