Firms missing out on recession aid opportunities

South Yorkshire manufacturing companies could be missing out on opportunities for support through the recession, claims a specialist task-force established by regional development agency Yorkshire Forward. The group is chaired by Richard Wright, CEO of Rotherham-based Intertius Ltd and former president of Sheffield Chamber of Commerce; it includes representatives from regional companies, Business Link Yorkshire, the Manufacturing Advisory Service and the Engineering Employers’ Federation.

After looking at all the support services on offer to manufacturers, the group found that, while there is significant support on offer to regional manufacturers in areas such as financial assistance and mentoring support, many are missing out on chances to access it.

Mr Wright said: “An example would be finance. There are various publicly funded finance schemes available through Business Link Yorkshire, but the banks still remain the major source of short-term finance. We know that they are being more challenging to companies which want to borrow. However, one of the many services Yorkshire Forward is funding through Business Link Yorkshire is a free financial health check, which allows a company to look at its financial situation in detail. Consequently, when you approach the bank, you have a much better understanding of the financial status of your company now and how cash flow looks over the coming months — this can make the bank more comfortable about lending. Similarly, there is a huge amount of support available via the MAS around process efficiency and productivity. MAS is also able to provide mentoring support, which can be incredibly helpful for those company leaders for whom this is their first recession.” As well as direct business support, manufacturing companies are also eligible for assistance from their local authority and Her Majesty’s Revenue and Customs via their Business Rates Deferral Scheme, which allows companies to spread payment of their tax or business rates to help alleviate short-term cash-flow issues.