Banks rarely seem to go bust despite making massive losses of billions of pounds. The average personal debt of a householder in this country is around £50,000—an amount which would sink many sign firms. Considering many sign-makers are one- or two-man businesses, it is fair to assume smaller firms carry a similar debt level.
This can trigger a cash flow crisis especially if the taxman is also after monies owing to the treasury at the same time”
The end comes for some in the industry when the bank calls in an overdraft. This can trigger a cash flow crisis especially if the taxman is also after monies owing to the treasury at the same time. A comparatively modest amount of debt—much less than the average personal debt of a householder can bring about the end for many in business.
Barclays Bank has seen shares fall by five percent this week when a fraud lawsuit was brought against them in the United States by the New York attorney general over falsification of documents and benefits to clients and pension funds. Such troubles would bring about the end for small firms and sole traders but not a high street bank, despite Barclays facing a £26m fine in May this year.
Sadly in the same month or in June Signarama Leeds, ECS Signage in Epsom, Artall Signage in Hall, AJN Signage in Skelmersdale, and Sign Supplies in Woking all bit the dust according to the Government’s Official Public Record publication The Gazette.
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ENDS