KENDAL businesses are being warned not to 'overstretch' as the UK economic recovery continues to gather pace.

Colin Johnson, partner at accountancy and business advisory firm Moore and Smalley, believes businesses could be at risk if they try to service an influx of orders while still under-resourced.

He believes many fail to mitigate against risks such as overtrading, increased staff recruitment costs, a rise in interest rates, inflation pressures, or exposure to exchange rate fluctuations.

He said: “It’s long been said there’s more risk of a business failing in an upturn than in a recession. That’s because many businesses suddenly have lots of big orders coming through but lack the working capital to fulfil them."