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Small businesses fear effects of double-dip recession

March 26th 14:41 Cost Management 

A number of small businesses could be inspired to seek the help of a facilities management service provider following the results of a recent report.

Cost management could become a key factor in business operations after a study from insolvency specialist R3 revealed that 28 per cent of smaller firms feel a double-dip recession would make them insolvent.

The lack of confidence can be attributed to the fact that many organisations have had to draw on their reserves in order to survive the economic downturn, according to R3 president Peter Sargent.

Mr Sargent believes that the popularity of the government's current business tax initiative shows that many firms are struggling to stay afloat.

"It is easy to forget that banks are not a company's only creditors, for many their largest creditor is the government," he said.

"With close to 300,000 firms in crucial Time to Pay tax arrangements with HM Revenue & Customs, it seems that a large number of businesses are in need of a financial health check."
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