A new report, “Bridging to Brexit: Insights from European SMEs, Corporates and Investors”, which looks at the impact of Brexit on SMEs, corporates and investors, in particular, on their use of wholesale banking and capital markets services, indicates that SMEs are more likely to suffer from Brexit-related disruption than larger firms.
Key findings show the businesses are primarily worried about the direct impact of a hard Brexit, such as trade barriers, movement of labour, increased compliance and customs costs. Both SMEs and large corporates are also worried about access to credit and fear risk management will become more expensive.
According to Simon Lewis, Chief Executive of the Association for Financial Markets in Europe (AFME), the banking-related effects of a hard Brexit could lead to a higher cost of capital for SMEs and more restricted access to wholesale banking services. He adds that SMEs would find it harder to navigate these wholesale banking impacts.
Mr Lewis also points to the fact that 55 per cent of the SME participants questioned in the report admitted that they had made no plans so far for Brexit.
For information about how we can assist by putting processes in place to lessen the impact of Brexit on your business, contact Steve Govey or your usual Beavis Morgan Partner. Our SME business experts at Beavis Morgan are available to structure your business with cashflow and profit forecasting to measure performance and maximise opportunities. We work to a pre-determined plan, to help you avoid any nasty surprises.