Most UK small businesses well-versed in ‘no-deal’ Brexit implications

Neil Davies (pictured), chief executive officer of Close Brothers Asset Finance, said: “We think this is a combination of wanting certainty, rather than the current fluid position, and an element of greater understanding of how Brexit will affect their individual business.”

Larger companies are most prepared because they are more likely to have international sales.

Amid ongoing uncertainty about whether a deal with the EU will be possible before the current October 31 deadline for withdrawal, just over half (56%) think a deal will be struck in time, although there are substantial regional variations, with 75% in London thinking a deal will be possible, while only 41% in Scotland agree.

Davies added: “When the survey was conducted, we expected there to be more clarity on the issue of ‘no deal’; however, with the recent political turmoil, it remains unclear.”

While Prime Minister Boris Johnson insists a deal is possible, critics fear there is too little focus on negotiations and that the UK will crash out of the EU next month.

They also point to recently published plans for a worst-case scenario of ‘no deal’, which warned of disruption to supplies of goods including fuel, medicine and food.

Johnson’s attempts to bring Brexit to a conclusion are aimed at allowing the country to move on from the 2016 vote and end years of uncertainty about the future.

The survey found 63% of SME business owners have seen their ability to trade affected by Brexit uncertainty, including 75% of those in the manufacturing and engineering sectors.

Davies said: “The sectors with the most exposure to Europe are the most unsettled because they aren’t clear about how Brexit will impact their customers, import tariffs, supply chain, raw goods, etc.

“Many firms have been stockpiling while pausing their spending and growth plans until an element of certainty returns.”

Close Brothers Asset Finance is a division of UK merchant banking group Close Brothers and provides industry with a range of flexible funding solutions ranging from hire purchase to leasing.

It was listed in fifth place in the 2019 AF50 listing of the UK’s largest asset finance companies.