Good planning is vital for small business insurance customers attempting to survive the recession, an expert has claimed.
Stephen Pegge, director of small business banking at Lloyds TSB, pointed out that many companies expected the economic downturn to ease this year but are beginning to realise recovery may not occur until 2010.
He added: "Firms have managed to keep themselves going in the hope that things would improve this year but now they realise they need more help to get them through this."
Mr Pegge advised small business insurance holders to concentrate on planning their responses to the various situations which could arise, noting that the current climate is still volatile.
In addition, the expert recommended that firms attempt to reduce their costs in a sensible manner, not cutting everything as far as it will go, while small business insurance customers will need to practice tighter control of cashflow.
A recent poll by Lloyds TSB Commercial revealed 52 per cent of companies are worried about consumer demand, 44 per cent about retaining clients and 42 per cent about late payments.
