Smallest motor factors left high and dry

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44 factors have been given a danger rating

The UK’s smallest factors are struggling as the effects of the credit crunch linger, according to a report by Plimsoll.

The analyst has given 44 small motor factor companies a danger rating.

David Pattison, author of the report, said: “Whereas large companies can call on banks and parent companies or cut out loss making parts, smaller companies are running out of cash.

“There are too many small companies chasing too little market. The inevitable is another round of consolidation with large competitors buying small companies at a discount.

“Of the 354 companies with assets of less than £3 million, we have identified 148 as vulnerable to takeover.”

This post was written by:

- who has written 256 posts on CAT Magazine.

Emma has been CAT's editor since January 2008. There isn't much she doesn't know about the aftermarket - and her favourite topic is definitely BER!

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