KPMG chief comments on impact of harsh trading climate

Businesses will feel the pain as lenders continue to reduce 'bilateral' debt facilities

Written by AccountancyAge.com

Lenders continue to reduce 'bilateral' debt facilities, such as overdradts, forex and BACS services, Simon Collins, KPMG head of Corporate, notes, commenting on how the latest developments in the economy are affecting his clients.

'This cash will be a vital lifeline in the first quarter of 2009. Some businesses will feel the pain more acutely, particularly in the retail, leisure and house-building sectors, which have increased working capital requirements after the New Year in the run up to Easter.

Advertisement

'Retailers and house-builders, for example, build up stock in the run up to spring. This will have wider repercussions for the suppliers into these sectors as well meaning the reduction of these facilities now could have far-reaching consequences next quarter.

'The inability to access bilateral loans could be the tipping point for many businesses as they brace themselves for the harsh trading of January and February next year.'

Tags:

  • Have your say
  • Send to a friend
  • Share
  • Print

Comments

White papers

Related jobs

More Accounting jobs

Spotlight

The Top 50 +50 survey 2009

All the news, views and analysis on our 2009 Top...

Elizabeth Rumsey, Virgin Galactic's FD

Profile: Elizabeth Rumsey, Virgin Galactic's FD

While Richard Branson and his Virgin Galactic team chase the...

How To guides

The archive of Accountancy Age's How To guides

Find your next job

Find your next job
Salary Checker

Job of the week

More finance jobs

Newsletters

Sign up here for the very latest news delivered to your inbox. Choose from the following options:

Your next job

Have your say

Should chancellor Alistair Darling lose his job for claiming for tax advice?
Yes
No

Advertisement

Search white papers

Search white papers

Advertisement

Advertisement