When it comes to the credit crunch, just how many businesses are truly affected?
Well, it is true to say that all companies will be affected to a degree as people have less disposable income and are choosing where to spend what little cash they have more wisely. Anything other than non-essentials have been cut back on so that money is saved and so all businesses are feeling the squeeze somewhat.
Of course, it would be the companies that deal in property and finances that are feeling it worse than anyone else. Many estate agents have been closing down due to the sudden, almost abrupt, halt in the housing market and this leaves many people out of work.
Then we have the banks and financial institutions. Mortgages are getting harder and harder to come by and more people are choosing to rent. This means that houses aren't selling, home owners are losing money hand over fist and pulling in their belts even further. The banks are no longer making the money that they have become used to and have become stricter on what they will lend out.
For those who wish to get their homes into a state of repair that gives them a better chance of selling to the few buyers that are around, home improvement loans are now difficult to get. This then has the knock on effect to all those in the home improvement business. Plasterers, decorators and interior designers are all feeling the pinch because of the knock on effect.
We also have removal companies. With the property market so slow and not many people moving house, the removal company business has been dead slow. Again, this is an area where people are trying to save money so if and when they are able to move, budgets are restricted and the removal company is the first thing to go, saving them money while they hire a van and move themselves.
The building market has slowed dramatically. With new builds not selling, investors are reluctant to put funds into buying up properties for re-sale or for letting. This means there are numerous properties sitting empty around the country, losing money for their developers.
On top of this we have those other trades involved in building and developing. Take surveyors, for instance. You have quantity surveyors who are involved in the new builds and re-developments and valuation surveyors who are involved with the re-selling of established properties.
These are all feeling the fall-out from the credit crunch and even when things do begin to pick up, as they are expected to in the next couple of years, it will take a lot longer for these people to get back on their feet. In the meantime, not only will their businesses be feeling the pinch, but many of them, particularly the smaller businesses, may not survive at all. This then leads to even more people losing their homes and the repercussions of a slump in the financial markets are felt for a many years afterwards.
It's relatively easy to see the price of everything rising and knowing that we have to pull in our belts. For most of us, this is the extent of what is necessary to get by but spare a thought for those that are going to lose their livelihoods, their hard worked for small business, from removal company to bespoke estate agent, and possibly their homes to.
Author Resource:-
Financial expert Catherine Harvey looks at the way everyone from removal companies to surveyors are affected by the credit crunch.
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