With predictions of another big freeze just around the corner, a number of companies admit to being ill-prepared for the disruption it will bring.

The Close Business Barometer, a quarterly survey of SMEs across the UK, found that while 62% of businesses in the West Midlands are worried about the effects of more arctic weather this winter, 29% don’t have a business continuity plan in place to deal with the consequences, such as staff absenteeism and power failures.

The British Chambers of Commerce has estimated that last year the economy lost £1.2bn a day due to the cold snap. SMEs are most vulnerable, and those that are already struggling because of the economic conditions may find that several days out of business due to extreme weather is the final straw.

Ian Steward, local head of Close Invoice Finance, said: “All too often people think about massive disasters when they talk about business continuity, but in reality it’s the more mundane factors, like bad weather, that can impact us most of all.

“If businesses aren’t prepared for the worst, it can have a serious effect on cashflow which everyone knows is the lifeblood of all businesses. Prevention really is better than cure and I would urge SME owners who aren’t already prepared to act now, checking that premises are winter-proof, that insurance is up to date and that flexible working plans are in place in case staff can’t make it to work.”

The study revealed that eight in 10 businesses operating in the transport and logistics industry are worried about the effects of another big freeze, substantially higher than the 58% average across all business sectors.
Ian continued: “Transport grinding to a halt is probably the single biggest economic blow when heavy snow hits the UK. For owners of logistics and haulage companies the cost of late deliveries, extra fuel charges and honouring strict contracts with clients can put a devastating strain on financial resources.

“The key for getting through one of the worst winters we’ve seen for years is preparation. Failing to plan could have a serious impact on your business and result in it being unable to trade.

“My advice to businesses would be to have in place suitable funding arrangements to ride out any potential cashflow problems associated with the weather. Invoice finance is one option. It enables businesses to access cash immediately, easing any financial pressure and allowing companies to get on with what they do best – running their business.”
www.business-money.com