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More than a quarter of small businesses in the UK believe that they will become insolvent if the economy suffers from a double dip recession – if you think your debts are not on a safe footing, talk to a small business financial adviser right away.

Research from insolvency body R3 suggests that although the UK has emerged from recession, many businesses have been worn out by the struggle to stay afloat – 28% said they would not be able to survive should the UK fall back into a recession. Their finances are simply too precarious and their debts have pushed them to the limit – any further loss of earnings would mean the end of their businesses for sure.

Peter Sargent, president of R3 says: "Many struggling businesses drew heavily on their reserves in order to survive and their resources have now begun to run out – it seems that a large number of businesses are in need of a financial health check.

"The journey back to recovery is slow and uncertain and we advise any business owner who believes their company may be on the path to insolvency to seek help sooner rather than later."

If you think your debts are stretching you to the very limit, talk to an expert about rearranging your finances so as to make them more manageable. While a double dip recession is unlikely, it is unhealthy to run a business on empty – get your debts in order and make your business safe again.

SOURCE: R3, 27/03/10

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