Brexit cash-flow fears for small UK manufacturers

SMALL British manufacturers have suffered cash flow problems due to Brexit or rather the lack of it.

When one considers that Brexit has become a movable feast, it has to be remembered that the government has accepted and even warned that there could be significant delays or shortages in many areas especially if there had been a no deal Brexit.

Companies have therefore needed to stockpile certain material such as parts for machinery and raw material to allow them to continue in business in the event that Britain crashed out of the EU.

Now with the possible delay until the end of January, the fact that there could be a change of Government which could still result in a Hard Brexit, no Brexit or further delay, those businesses are in something of a quandary as to what they should do in the interim.

Their problem is that the imports that they have purchased are not only taking up valuable space but are a drain on their finances and although they will no doubt be able to use all of this material in the long-term, it won’t be much use if they run out of money to stay solvent.

Alternatively, if they do suddenly experience a run of orders due to the delay and retailers or distributors suddenly stocking up whilst they can, there will be the further conundrum of whether to import new raw materials or not.

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Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Share your story with us by emailing [email protected], by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

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