Brexit stockpiling affecting business cashflow, research finds

Brexit stockpiling affecting business cashflow, research finds
Credit: Shutterstock.com/ nito

Almost quarter of employers claim that their employees have started stockpiling goods over Brexit concerns, according to new research.

Figures from premium finance company, Premium Credit, found that 4% of people expected their employer to begin stockpiling in the next few weeks.

The impacts of stockpiling can be far-reaching and include companies and people having less cash and relying more on credit to make purchases from clothes, stock to insurance.

The research reveals that 16% of people who work for employers that have been stockpiling claim it has had a “very negative” impact on their cashflow, with a further 58% saying it has had a “slightly negative” impact.

Two out of three (66%) say it has adversely affected their employer’s expansion plans; 60% say this about their plans for recruitment; 51% about promotions, and 64% claim to have lost out on pay rises because of it.

“There are a lot of concerns regarding a bad Brexit, and our research reveals the extent to which both businesses and individuals are stockpiling as a result of this,” said Adam Morghem, Strategy and Marketing Director at Premium Credit.

“The implications  are much wider than many may suspect. From creating cashflow problems, to under insurance of stockpiled goods to  curbing a business’ plans for expansion.

“Our findings also suggest that many people may also be missing out on promotions and pay rises as a result of Brexit related stockpiling.

“With cashflow being adversely affected, it puts pressure on businesses and individuals  to rely more on credit to buy the goods and services they need.”