According to the Forum of Private Business (FPB), small businesses should protect themselves against the effects of the credit crunch. They should be prepared for job losses, actions from employees and delays in payment from customers.

A KPMG business confidence survey found that up to 53 percent if firms are planning to reduce staff levels. The survey also revealed that 49 percent of larger companies, those with revenues over £250m, intended to negotiate longer supply payment terms with smaller suppliers.

KPMG advisors say “companies need to focus on gaining control of their cash and to work smarter across the supply chain to create opportunities that reduce the cash cycle for all participants”.

Philip Moody, the FPB’s senior member services representative, advices business owners to gain as much knowledge as possible to guard against claims from employees.

“Recent figures have shown a huge rise in the number of tribunal claims. As redundancy is a major factor fuelling tribunal claims, this is likely to continue given the figures from KPMG, which indicate the likelihood that a lot more people will be made redundant in the coming months,” he said

Our Random Articles

• Small businesses plan staff cuts in early 2012
• Unemployment rise – what does this mean for small businesses?
• The Mary Portas Review
• Experts Warn Small Firms of the Need to be More Aware of IT Security Risks
• SMEs Unprepared for New Pension Reforms

More Links