“The rules of financial engagement have changed dramatically in recent months. Many company directors have not had the experience of managing in a recession before, and need to fundamentally review their strategies now. While we can wait for liquidity to seep back into the banking markets, there are actions that businesses can take now to improve performance and improve the likelihood of securing finances.

“Understanding that turnover on its own is no indication of success; that liquidity and profitability are truer measures of financial strength and that the cost of finance is vital, are facts that all too often get overlooked. The next eighteen months are going to be tough. We need banks to support businesses in the medium-term, but we also need businesses to look after their own interests and make sure their own houses are in order from a financial perspective with cash and costs managed particularly acutely.” 

Craig Wright is chief executive of Exception, the UK’s largest outsourced electronics solutions provider.

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