(RTTNews) - Attitudes of UK companies towards financing and supply chains are changing, a survey conducted by Ipsos MORI in October and November and sponsored by the Confederation of British Industry and business advisory firm Deloitte revealed Monday.

Over half of the 66 companies surveyed said they will now only tolerate a lower level of risk from gearing. Within that group, 70% said an economic recovery would not reverse their position.

Two thirds, 68% of firms, expect no improvement in credit availability in 2010 and are reshaping their business financing. Half of the companies said they would use less bank debt, while 44% said they would rely more on equity finance, and 26% said they would make more use of bond issuance.

"Firms looking to reduce risk and acknowledge their interdependence are seeking more collaborative ways of working through partnerships and joint ventures," CBI Director-General Richard Lambert said. "What we now need is a more balanced, less risky pathway to growth."
When asked about supply chain fragility during the recovery, the survey revealed, only 24% said that they are not concerned. Businesses were most worried about a unique, specialist supplier going bust.

The CBI said the recession and credit crunch had become the catalysts for a new era. "We may be at the start of a new era for businesses, in which attitudes to finance and to corporate leadership are changed for a generation by the shock of the past two years," Lambert said.

Senior partner and chief executive of Deloitte UK, John Connolly, said, "The route to recovery is sure to present challenges, but UK business has shown it has the ability to respond with imagination and flexibility."

by RTT Staff Writer

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