According to research by Direct Line for Business, any two-week disruptions to their working operations cost small businesses £8,775. Their research, which looked at data from the last two years, has found that more than 550,000 small businesses have been forced to temporarily cease trading following a myriad of disruptions including lost, damaged or stolen stock and fleet repairs.
Tom Rolfe, Director, The Channel Partnership says “The economy relies on small businesses, and while there is a direct cost of £8,775 to their business for every two weeks they are closed, the impact on the wider economy can be much higher. Undelivered stock, delays in production and increasing costs can all place pressure on the customers that these businesses work with, which places overall pressure on the efficiency of the economy.”
He continues “The statistics also highlight that one in five business owners would be forced to fold their business after a month of inactivity, due to the lack of revenue. We often see this happen with insolvencies, with a ‘domino effect’ of businesses going bust after a key supplier folds. This is something that businesses need to be aware of, and a risk they should be looking to offset if they are to reduce uncertainty and maintain future performance.”
Businesses interested in considering credit insurance to reduce uncertainty risk can speak to Tom Rolfe and the team on 01275 817320.