Less than one in ten cross-border traders are prepared for cash-flow issues in the event of a no-deal Brexit, according to new research.
New research has found that most are choosing to disregard the potential impact a no-deal Brexit could bring.
While the UK is due to leave the EU on October 31, only 6 per cent of cross-border businesses have examined the possible legal implications for business contracts.
Significant additional costs
Cross-border body InterTradeIreland said that the consequences of market access changes could mean firms are exposed to significant additional costs.
They have urged business owners to take steps to protect themselves.
Aidan Gough, InterTradeIreland’s designated officer and director of strategy and policy, said: “Ignoring Brexit is a bigger issue than not preparing for it.
“Failing to take into account how it may impact your business could be very detrimental down the line.”
20,000 cross-border traders
There are about 20,000 cross-border traders on the island of Ireland.
A substantial proportion of these are micro-businesses, which are particularly vulnerable to changes in current trading arrangements.
The latest research also shows continuity of supply is an additional problem that could hinder cross-border businesses and the ability to trade.
But fewer than one in ten have taken steps to interrogate their supply chain.
Extra taxes on business
Tariffs are a further issue that could strike at the viability of SMEs (small and medium-sized enterprises) in the event of a hard Brexit.
InterTradeIreland’s latest business monitor highlighted that just 12 per cent of SMEs that trade across the border have looked at the possible impact of extra taxes on their business.
Mr Gough added: “We want to reach as many SMEs as possible to help them prepare, that’s why InterTradeIreland is launching our new campaign.
“This will be a significant departure for InterTradeIreland.
“It recognises that Brexit is the elephant in the room and with the deadline of October 31 fast approaching, Brexit is now just too big to brush under the carpet.
“We think this approach and striking visuals will resonate with busy firms on many levels.”