Two in five (40%) SMEs in the construction industry haven’t adequately prepared for the UK’s departure from the EU.
The main reason for this is the continued focus on managing the impact of the pandemic.
Among construction SMEs, 28% of their monthly business income is dependent on business with customers in the EU.
Should tariffs or levies be introduced on building materials or services from the EU, this could have a significant knock-on effect on cashflow.
Andrew Dixon, commercial director for specialist finance at Aldermore said: “Whilst the delay in preparing for Brexit is understandable given the ongoing impact of the pandemic, it could have serious financial consequences and make 2021 just as painful as 2020.
“It’s crucial that SMEs begin to take steps to prepare for the potential wide-ranging effects of what is increasingly looking likely to be a no-deal Brexit.
“Businesses who are confused about where to find to information on how to prepare should consult the government’s guidance for SMEs post-Brexit transition.
“This will help them work out how any regulatory changes could impact them and their business. Aldermore has also created a Brexit hub with key information for businesses to help them best prepare for the transition and the challenges and opportunities that lie ahead.”