A Bradford law firm has come up with a safety net for companies which may have to close or are going through a tough patch.

Lee & Priestley, with offices in Sunbridge Road and Leeds, has set up a new insolvency service to cope with business failures and firms facing financial difficulty over the next few months.

Bradford exporters are suffering from high interest rates and the price of Sterling abroad and the effects of failing overseas economies.

The firm says small companies - which make up 66 per cent of Bradford's industrial profile - will also be hit by the introduction of the National Minimum Wage next year.

The law firm says the regional economy is expected to slow down and expects more companies will require legal advice on how to stay out of financial difficulties.

The company has come up with a series of key points to help plan for recession. The firm says companies should:

Use monthly management accounts;

Hold early discussions with the firm's bank manager;

Maintain tough credit control;

Ensure Inland Revenue and Customs & Excise bills are paid on time;

Explore other rewards to wages.

Anthony Wilson, the firm's corporate recovery specialist, said: "There is no doubt that both the export market and the domestic market have retracted as a result of both Government policies and international economic problems.

"Our exports have become more expensive due to the high pound and our domestic market faces tougher competition through cheaper imports."

He added that smaller firms faced special problems because of the growth in wages. "The minimum wage next year could make matters worse. At the same time as their staff costs are rising, many small businesses are seeing sales and profits start to decline.

"The consequences in terms of possible insolvency are very serious."

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