Credit crunch 'negatively' affects business, say CFOs

News Article - 09 June 2009
Category: Industry

There has been a 16 per cent increase in the number of chief financial officers (CFOs) who think the impact of the credit crunch will negatively affect their business.

According to a survey by Deloitte, 58 per cent of CFOs are pessimistic about market conditions, compared to 42 per cent in September.

Vice chairman of the firm Margaret Ewing said that despite appearing confident about the impact of the economy on business three months ago, there has been a shift in opinion as the credit crisis continues.

"CFOs have seen more direct evidence of the effects on the cost and availability of capital," she added. "As a result, the users of corporate capital are beginning to take a more negative view of the outlook."

However, 52 per cent of respondents claimed to be confident of finding alternative forms of credit, citing capital markets debts and equity as financial solutions. An additional 95 per cent said they had their own resources to rely on such as cash and saleable assets.

The Financial Services Survey by the Confederation of British Industry and PricewaterhouseCoopers recently found that 70 per cent of firms believe that volatile market conditions will continue for at least six months.

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