Check financial stability of IT suppliers online before you invest

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Check financial stability of IT suppliers online before you invest

Karl Flinders

IT buyers can now check the financial stability of suppliers online before negotiating contracts as Begbies Traynor makes its Red Flag Alert system available commercially.

The software has more than six million records about UK businesses which are updated constantly.

Through an online subscription IT buyers can for the first time gain the same insight as Begbies Traynor staff have previously had.

It will help businesses avoid ailing suppliers. This is more important in the tough economic, climate where IT suppliers of all sizes are at risk.

According to Red Flag Alert, 6,905 companies in the IT sector were experiencing "significant problems" in the third quarter of 2009, and 110 companies were experiencing critical problems.

"The IT sector has been one of the heaviest users of the HMRC 'Time to Pay' scheme, with indications that up to 16,000 businesses may have applied to defer their tax liabilities. As this temporary cash flow supports is unwound and as capital spending remains constrained across the UK economy, 2010 looks like being a tough year for the industry, with any recovery likely to be delayed until well into 2011," said Nick Hood, partner at Begbies Traynor.


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