A LEADING Oxford insolvency specialist is urging businesses to 'proceed with caution' in a bid to prevent a return to the recession, writes David Duffy.
Tracey Maris, partner at the Oxford office of business advisers Grant Thornton, says that a worrying increase in insolvency work has begun to emerge over the last few months.
She is advising business owners to keep a tight rein on their finances and, if possible, to keep some back for a rainy day.
"I don't want to be seen as the harbinger of doom and gloom," said Tracey, "but we are seeing a marked increase in all areas of insolvency and in particular in receiverships and individual voluntary arrangements. "Although many of the inquiries we are dealing with haven't resulted in receiverships, all the signs are there and it won't take much to swing the balance." According to Tracey, the number of receiverships and liquidations in larger cities such as London and Birmingham, is already on the increase and she warns the trend is spreading towards Oxford.
"There are a number of worrying factors which could have a negative effect on business," said Tracey.
"We have seen interest rates gradually creeping up since the last election, and each time this happens, businesses which rely on loans and overdrafts lose a little bit more of their margin.
"The strong pound is putting pressure on exports and already we are seeing evidence of labour being shed in some parts of the country."
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