NicolaRout isanAssociateSolicitoratThompsonSmithandPuxon, aLegal 500recommended firm in Essex offering a full range of legal services to businesses and individuals. She sits within the corporate and commercial team and specialises in restructuring and insolvency, having qualified in 2002 and worked in the City for several years, before joining TSP in 2019. Nicola is also a member of R3 and the Insolvency Lawyers Association. What steps should a business take at a time of economic stress? All businesses are facing economic challenges at the moment, with the rise in costs across the board. Liquidity is a key factor for the survival of any business and given rising interest rates, the ability to source credit is squeezed even further. Businesses should look to reduce their debt burden, where possible and ensure they are calling in any debts owed to them. If your business is facing financial difficulties, those in your supply chain will likely be struggling too and you do not wish to have your financial stresses exacerbated by a domino effect of insolvencies. Nicola Rout Associate Solicitor at Thompson Smith and Puxon What Should Businesses do in a Time of ECONOMIC UNCERTAINTY I would advise that businesses need to engage proactively with their creditors, suppliers and shareholders to ensure they have the support they need to survive. Perhaps most importantly, businesses should take professional advice from their solicitors and accountants, and crucially take advice early to give enough time for agreements to be Finance Monthly. Bus i ne s s & Economy 19
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