If the UK’s winter weather of last year returns at any point during the next few months, 84% of businesses believe they’d be adversely affected, according to a report by insolvency trade body R3.
61% of businesses said that staff members wouldn’t be able to get to work, with just under half expecting to see profits dip during any periods of severe winter weather.
R3 President, Frances Coulson, commented on the findings, ““These are worrying findings. Last year the weather caught us all off guard and the detrimental economic impact was widely reported. It seems as though a few days of icy weather this year could easily snowball into a financial disaster, especially for struggling businesses. They should be planning for the worst to avoid taking a real hit if trading suffers.”
The statistic that would cause most concern was that 6% thought an extended period of adverse weather could even result in insolvency, as businesses, particularly in the retail and distribution sector, would see a major impact on the amount of business they could do.
Invoice finance for cashflow problems
Are you prepared for adverse winter weather? Does irregular cashflow leave you worrying about what you would do if the winter weather does hit hard?
Invoice finance solutions are designed specifically for businesses that may suffer from cashflow uncertainty due to such issues as late payers or unpredictable repair bills.
In the UK, there are over 12,000 businesses in the services sector that actively use business finance facilities such as Invoice Factoring or Invoice Discounting.