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Write off up to 75% with help from Government Legislation

Write off up to 75%
with help from
Government Legislation

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Despite the running costs of small businesses declining, some may be affected by rapid deflation.

This is according to More Than Business, which found that there was a sharp fall in deflation in both the last quarter of 2008 and the first quarter of this year.

"I doubt we will get back to the very sharp inflation we have seen, but I suspect we will move closer to cost stability next quarter," noted Stephen Roper, professor of enterprise at the Centre for Small and Medium-Sized Enterprises at the Warwick Business School.

Profit margins are under intense pressure at the moment, the study found, especially due to the low demand for both products and services.

According to a recent study from the CBI, businesses are finding it easier to obtain new credit for the first time this year and expect the situation to improve at a similar rate over the coming three months.

The supply of existing credit was broadly flat, it discovered, with two per cent reporting better availability over the past three months.

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