BUSINESSES across Cumbria should not have to curtail growth or expansion this year because of continued economic uncertainty, one of the region’s leading business voices has said.
Some firms in the county may be putting expansion and equipment purchases on hold amid concerns of a future downturn post-Brexit.
But Karina Gallagher, managing director of Hornby Commercial, in Ulverston, said this meant companies were missing out on opportunities which could actually increase their profitability in the longer term.
The former banker has now released advice for business owners across the region who remain unsure about whether they should press ahead with their plans in the coming months.
“Some businesses are concerned about retaining their cash flow because of the uncertain climate we are in at the moment,” Karina added.
“This is certainly understandable and I’d always recommend budgeting for the cash a company is going to need in the year ahead.
“But keeping hold of cash can often result in the postponement of moves which could strengthen a firm’s overall position by helping to bring in profit later on.
“For these businesses, there are plenty of options. They can use an appropriate form of low-cost finance to keep cash where it’s needed while still being able to go ahead with planned projects.”
The advice from Hornby Commercial was released following the findings of the most recent quarterly survey from the British Chambers of Commerce.
The organisation found cash flow continues to be a concern for businesses in the manufacturing and service sectors, as it warned market uncertainty is stalling economic growth nationwide.
Karina, who secured more than £6 million of finance for businesses throughout the area last year, added: “Many businesses are hesitant at the moment so they are also opting to use finance to spread things like tax payments and larger asset purchases out over a number of months while keeping their cash in the bank.
“There are lots of options available which will make sure firms are on a sure footing for the months ahead without missing out on essential opportunities to grow.”