Some seven per cent of firms plan to invest in more equipment and other capital in a bid to expand in the new year, according to a new survey.
R3, an insolvency trade body, has found that almost one in four (39 per cent) of firms are optimistic about the future despite the current economic situation.
However, a similar percentage of firms (8 per cent) are considering selling some of their assets to boost cash flow.
Steve Law, president of the organisation, warned firms that this could be the wrong way of dealing with tough conditions.
He said: "Almost one in ten businesses are selling assets to maintain cash flow. This can be a good decision if the assets are surplus to requirements.
"However, if selling assets reduces efficiencies, it is a worryingly short-sighted policy that only escalates financial difficulties in the long run."
Purchasing more machinery could actually boost productivity and increase sales.
Despite an increase in signs of business distress, only three per cent of firms believed they could face insolvency in the new year.
Typical Guttridge equipment used in the process systems, process engineering and manufacturing processes industry includes; heavy duty conveyors – industrial conveyors – belt conveyors
