comments from Becci Wicks, Lloyds Bank

All comments to be attributed to Becci Wicks, regional director for London at Lloyds Bank:

“It’s certainly a challenging time for businesses. However, last week’s forecasts from the Bank of England are unlikely to have come as a surprise to most of the region’s businesses. Many are familiar with facing economic headwinds, and this experience is helping breed resilience. Our latest Business Barometer data in July revealed that London’s businesses still remained among the most confident in the UK, with the level of confidence remaining at the same level as the previous month.

“This optimism is potentially down to the way firms are approaching the challenges, with the survey revealing that nearly half (45%) of firms in the capital are looking to evolve their offering to help them pursue growth. Meanwhile, many that I’ve spoken to are working more closely with their customers and suppliers to help strengthen bonds and business prospects.

“But these are uncertain times and successful businesses will need to continue to stay alert to future headwinds. Keeping a close eye on working capital is a strong way of mitigating these challenges, while conserving cash, finding ways to reduce costs, and being competitive on price should be a priority for the region’s business leaders.

“There are also a number of funding options available to make sure that fluctuating demand doesn’t have a damaging impact on their cashflow. Financial products such as arranged overdrafts and corporate credit cards can help to prevent pressure points forming in firms’ operations. And for larger companies, or those with long-term cashflow requirements, tools like invoice finance and asset-based lending can be invaluable finance solutions.

“It is always difficult to predict how well any business will perform, but working closely with trading partners, actively monitoring cashflow, and making the most of the financial tools available will help the capital’s businesses deal with economic challenges.”