Article 50 of the Lisbon Treaty has been triggered by the United Kingdom to leave the European Union (EU) completely or in some form. We examine some of the key areas which will effect SME’s at most.
Access to Single Market
At present businesses which trade within European market, can import and export goods without incurring tariff’s or charges being imposed by the local governments. However should Britain leaving with EU without a single market trade deal, business will be hit with significant costs for importing and exporting. As we see many SME’s particularly High street business across the UK are already struggling, for some this maybe the final nail in the coffin as it may not be feasible for them to continue to trade.
Many businesses especially the construction companies, commercial cleaning companies, café, bars and restaurants to name a few have heavily relied on workforce personnel which have come over from EU countries to work in the UK. SME’s can face significant issues after Brexit if EU citizens who are here for work purposes require visa or they are required to meet other immigration obligations. This can also be a financial burden on the employers and their staff which may result in staff moving back to their home countries.
Several banks have indicated over the year that they may consider leaving the UK market after Brexit. This can result in businesses and individuals with no bank account to operate from. For new bank accounts to open, it can sometime take up to 2 months.
Similarly, if a business have any loans which is funded by a lender based in the EU, this can also have a very significant problem as the bank may decide not to continue trading and may therefore pull out from any funding they have provided due to the change in their circumstance.
The value of the pound is also another adverse impact which businesses have to consider. As we have seen since the Brexit process has started, the pound has taken significant hits against the euro and dollar. For business trading with companies in the EU, this adverse Foreign exchange impact can also have damaging effects on the business.
HOW CITYEDGE & CO. CAN HELP?
Here at CityEdge & Co. we have the expertise and knowledge to help and support businesses to minimise any adverse impact of Brexit. If you require help and guidance, please contact us by phone on 020 8550 5295 or by email at: [email protected].