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

It has warned companies about invoice payments being disrupted by staff holidays and mail delayed by 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 is not uncommon for firms to wait three months for payment."