Lloyds TSB: Prepare for economic recovery

Businesses must get ready to make the most of an upturn in the economy, Lloyds TSB has advised.

The bank said businesses that are prepared for economic recovery will thrive when the upturn begins.

Although there is no certainty when recovery will begin, firms that do not plan could fall into the trap of overtrading, the bank said.

“One thing is clear - those businesses already looking towards the upturn and planning how to make the most of it, are the ones which will thrive,” said John Maltby, Lloyds TSB’s commercial director.

Maltby made the remarks after a survey by Lloyds TSB discovered that 31% of businesses have not put together plans for when the economy enters recovery.

An even greater number, 36%, said they don’t believe there is anything they can do to get ready for recovery.

“Recession has weighed heavily on UK businesses and it is easy to see why talk of a recovery might bring welcome relief,” Maltby said.

“But in the same way that we have encouraged firms to take action to survive the downturn, they will also need to prepare for the return to growth.

“Those firms that sleepwalk towards recovery risk not just losing out but falling into the overtrading trap.”

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