Prospect of Higher Inflation Gives Small Firms Reasons To Be Wary Says Check That Company

Small firms need to be on guard against heightened potential for late payments and bad debts if inflationary pressure continues to grow in the UK economy, according to the operators of leading credit checking website Check That Company.

With headline inflation continuing to run well above target and predictions that it will go higher this year, there is already reason for concern. In addition, recent comments by Bank of England monetary policy committee member, Andrew Sentance, highlighted the concern amongst many observers that, due to global forces, there may be little or nothing the government or the Bank of England action may can do to prevent inflation growth.

The comments will increase pressure for a rise in UK interest rates, which will see the cost of borrowing rising for consumers and small businesses as well as putting the brakes on growth prospects, says Dennis Scott, Operations Director of Check That Company.

“One way or another, it is going to be tough for smaller firms. High inflation will put their costs under pressure and higher interest rates will make it tougher and more expensive to borrow money or maintain overdrafts. It is hard to see how we won’t have some fall-out amongst the small business community. It is certainly going to be vitally important for small firms to pay attention to the basics and ensure that they don’t take unnecessary risks.” Scott is also sceptical about the recent announcement that extra money is to be made available by major banks to fund small business growth. “We are not seeing any of that translate into an easing up of fiscal restraints for small businesses. If anything, we are seeing higher levels of caution and reticence. We must hope that all the pressures that are on small businesses do not combine to bring the whole SMB sector to a grinding halt.”

Small firms can however extend their chances of survival by getting the simple things right, he added. “Taking good professional advice, checking credit ratings of prospects and existing customers, and making sure you get paid on time, are all important in the current climate. Making sure you are not exposed to unnecessary risk is just good common sense”, he says.

Businesses can check their own credit position and that of other firms quickly and easily on the Check That Company website (www.checkthatcompany.co.uk). Registering takes seconds and you can get your first detailed company report for just £1.99. Official company documents can be purchased for just 99p each. After that you get reports for only £2.49 each on a pay-as-you-go basis or less if you stock up on credits.

With over 9.4 million company reports on offer, Check That Company is the most comprehensive and up-to-date website and online company information database for businesses in the UK and Ireland. Businesses can register with the service simply by going to www.checkthatcompany.co.uk. It operates on a pay-as-you-go model and no annual subscription is required to access the service.

For more information on Check That Company please contact:

Dennis Scott

Check That Company

Tel: 07860 567940

Email: info@checkthatcompany.co.uk

Web: www.checkthatcompany.co.uk