SMALL businesses operating in the London area will benefit from greater availability of flexible van hire as the economy shows signs of recovery.
Our experience is that many SMEs run out of cash during the recovery phase, as there is a real temptation to overtrade
Specialist professional services firm Begbies Traynor Group says there is a real acceleration in the UK economy with a 39% reduction in firms ‘in critical distress’, with construction leading the way.
However, it warned that SMEs could face the banana skin of financial difficulty when they least anticipated it: on the economic upturn.
Commenting on its ‘Red Flag Alert’ state of the nation report Julie Palmer, partner at Begbies Traynor, said:
“We have real fears that many SMEs will have serious financial difficulties at the time they least expect – during a recovery. Our experience has shown time and time again that many SMEs run out of cash during the recovery phase, as there is a real temptation to overtrade.”
Flexible hire is one way for SMEs to contain costs: rent a van when you need it, return it when you don’t – allowing SMEs to flex costs against income without overstressing the business.
Against this brightening economic outlook, Northgate Vehicle Hire has announced plans to open up to eight new depots in the London area over the next 12 months offering flexible van hire.