Wednesday, Dec 10, 2008
2009 will be a downer for the housing market
MailOnline: 'Unemployment landslide' looms as 40% of small businesses consider closing down
Workers must brace themselves for an 'insolvency epidemic' as British businesses go bust next year, according to a shocking new report.
Posted by v stor @ 05:43 PM (228 views) Add Comment
2 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. it_is_going_with_a_bang said...
"John Wright, the Federation's national chairman, blamed many of their problems on the banks' treatment of small firms."
I agree that this would cause problems. However, if John Wright is willing to act as a guarantee for some loans for the small businesses he is talking about then I am sure the banks will lend.
Until then he should go blame someone else.
If a struggling business came to you and aked to borrow money - usually with no guarantee and lets not forget what 'limited liability' actually means! - then would you be slapping the notes on the table? Or keeping your wallet in your pocket?
Enough said.
2. str 2007 said...
It's going with a bang
I think most business loans from the bank are usually secured against a Directors house. But you're quite right the majority of businesses that need money now are in trouble.
Alot of businesses IMO haven't factored in 'business risk' to the correct level in their pricing. Quite simply they weren't making enough margin in the good times.
In fact the risk levels of 'bad debtors' is so high now that even a relatively viable small businesses could work all year only to loose all there profit through a couple of bad debts.