Protection Urged For Small Firms, Following Carillion Crisis

18th January 2018. 

Business Secretary Greg Clark has made a plea to lenders to protect small firms from any further financial crisis following the Carillion collapse. Here at the Credit Protection Association, we are always there for our members who fall into financial difficulties. We hope these lenders will follow through with their promises but if not, CPA has years of expertise to aid any business affected by Carillion.

The Government are desperately trying to stop the Carillion crisis from spiralling into a bigger economic crisis, where thousands of jobs could be lost.

Mr Clark chaired a meeting yesterday with representatives of high street lenders and the British Business Bank, where he asked them to ensure that “they are in contact with customers impacted, that they have in place the advice and support needed and that any individual cases are escalated and dealt with sympathetically, swiftly and appropriately”.

A 48-hour lifeline for Carillion private-sector contracts was initially proposed, during which the Government ensured workers were paid. This is due to run out today.

Union chiefs have called for action to protect thousands of sub-contractors and other firms carrying out work for Carillion, many of which are owed significant sums by the construction giant.

Len McCluskey, leader of Unite,  and GMB boss Tim Roache have both called for further action, with Mr Rochahe even suggesting the setting up of a task force to give small firms more time to deal with the crisis.

Brian Berry, chief executive of the Federation of Master Builders, warned there could be a “domino effect” among smaller sub-contractors who are relying on the money coming from Carillion.

The recent collapse of the construction giant, Carillion, has had a devasting impact on many businesses across the UK. While it has affected businesses of all sizes, it is the smaller firms that have the most to lose. Initial strategies from the Government did not go far enough so they have now reached out to banks to offer aid to small businesses. While their involvement could bring some relief to business owners, it is uncertain when, or from which direction, this aid will come.

The Credit Protection Association offers its sympathies to companies affected by the crisis, and also its expertise. Our staff have decades of experience in credit management and will do all we can to get your business thriving again. Our products range from credit ratings and company directories to debt recovery and tracing. We are ready to combat this crisis, so get in touch with our staff by the details below!