SMALL firms and subcontractors hit by the collapse of outsourcing giant Carillion have been urged to seek help to stay afloat.

Paul Barber, North West chair of insolvency and restructuring trade body R3, says firms which are owed money need to assess the impact on their business and understand their options.

He said: “Many small subcontractors do not have cash reserves or assets to fall back on so will be in a vulnerable position.

“It is all the more galling as with this type of work it can be that the sub-contractor has carried a lot of the risk inherent in the main contract

“Those which might be at risk should take professional advice as soon as possible and understand that the best option might be – for example, raising finance to overcome immediate cashflow problems.