M Institute co-founder Paul Druckman was wondering how medium enterprises have been impacted by bank actions over the past few months of the economic crisis. Here's what he found.
An excellent source from within the accountancy profession prompted me to check out which businesses have been put under by the banks in the last three months of 2008.
A quick perusal of the list shows that a number of medium enterprises are among the casualties. These had been profitable, but which the banks just chopped, in some instances with less than 24 hours' notice to rearrange their facilities. In the North of England, I am told that Yorkshire Bank and the Co-op have rescued quite a few at next to no notice.
However things have gone quieter in the last month since the Government leant on the banks to change their behaviour.
Does anybody have any bank actions to report? Do get in touch.
Last night's Panorama with Theo Paphitas was good. You can watch it on BBC iplayer.
http://www.bbc.co.uk/iplayer/episode/b00hvty9/Panorama_Credit_Where_Its_Due/
His remit was as follows...
"Business dragon Theo Paphitis asks if the banks and the government are doing enough to help Britain's 4.7 million small businesses survive the recession... Are Britain's small firms are getting credit where it's due?"
Theo certainly had a good pop at the banks and the government... but there was a more important, fundamental point that needs to be re-iterated.
Put simply, profitable businesses will go bust, and as Theo suggested, they do go bust! And the reason... CASH-FLOW is the big issue right now.
Too many examples of profitable and growing small/medium-sized busiensses abou to go pop bacause of lack of cash.
Robert Craven
Author, Beating the Credit Crunch
Posted by: Robert Craven | February 24, 2009 at 08:22 AM