Companies predicted to face 'testing times' for a year

The sharemarket closed on Monday at a three-year low, amid concerns of a looming recession in the US and Europe, and the financial stability of global financial institutions.

The market is expected to tumble again on Tuesday following sharp falls on US and European exchanges overnight.

"If you were a CEO of a company who needs money to fund ongoing growth or a debt that needs to be serviced, or is in an industry that's sensitive to the economic climate, these are very, very testing times," Dr Switkowski told ABC Radio.

Treasury departments, largely invisible partners of corporate finance function, were now absolutely front and centre.

"Access to cash, the ability to fund your operations, is pretty much the number one challenge for most business executives and this is a character testing time at the business end.

"Companies, I think, are rapidly revising their growth expectations for the next year or so.

"I think we're going to confront a pretty, pretty tough period for at least another year."