FIRMS in the North-East may be in for a lean Christmas, according to the Federation of Small Businesses (FSB).

It has warned companies they face the double whammy of having invoice payments disrupted by staff holidays and routine mail delayed because of a backlog in the postal service.

John Wright, FSB national councillor for the North-East, appealed to all firms to spare a seasonal thought for their creditors and to sign their cheques as well as their Christmas cards.

He said: "Christmas can be a boom time for small businesses. Spending and trade increases but in some cases it's not uncommon for firms to wait three months for payment.".