Monday view: retail, leisure and house-builders could buckle under the pressure as bilateral loans, such as overdrafts, are pulled
Simon Collins, Head of Corporate Finance at KPMG, working with businesses across the industry spectrum, comments on how the latest developments in the economy are affecting his clients:
"We are seeing evidence that lenders are still reducing 'bilateral' debt facilities, such as overdrafts, forex and BACS services. This cash will be a vital lifeline in the first quarter of 2009. Some businesses will feel the pain more acutely, particularly in the retail, leisure and house-building sectors, which have increased working capital requirements after the New Year in the run up to Easter. Retailers and house-builders, for example, build up stock in the run up to spring. This will have wider repercussions for the suppliers into these sectors as well meaning the reduction of these facilities now could have far-reaching consequences next quarter. The inability to access bilateral loans could be the tipping point for many businesses as they brace themselves for the harsh trading of January and February next year.”
KPMG News 01 December 2008
-ENDS-
Further information:
Sorrelle Cooper, Senior PR Manager, Advisory
Tel: 020 7694 8527
Mobile: 07932 078218
Email: sorrelle.cooper@kpmg.co.uk
Notes to editors:
Monday view is a weekly commentary from KPMG experts on how the current economy is affecting their clients on the ground.
About KPMG:
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