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Double Dip Impacts Small Businesses

With the UK entering a double dip recession in the first quarter of 2012, there are fears that this stagnation is impacting on the growth potential of the SME sector. Unfortunately, there is new evidence that this is a reality. Business turnover has decreased in Q1, mirroring the economy as a whole.

SME Turnover 

Small business turnover decreased by 7% between the last quarter of 2011 and the first quarter of 2012 according to the Cash Flow Barometer, a quarterly study commissioned by ABN AMRO Commercial Finance, an invoice based lender. This slow start to the year is confirmed by the export turnover for the same period falling an estimated 9%.

Peter Brinsley, International Manager at ABN AMRO commented, ‘These disappointing recent results are reflective of a challenging trading environment and echo the economic picture as the UK falls technically back into recession.’

‘Short term paralysis is fuelled by continuing speculation of a double dip recession should now be at an end and small businesses should interpret these figures as a blip and not a trend. Export turnover is still up significantly on 2011 overall and there are growth opportunities available, particularly for bold and agile small and medium businesses’

Therefore, though the outlook might not seem rosy, it’s not time to panic. Though figures are not encouraging for early in the year, this is not to say it’s the start of a new recession, as Peter Brinsley has commented.

Get Back On Track 

For any small or medium business looking to buck the trend and look to growth and recovery, then invoice finance can be an ideal way to get the ball rolling. If your business is suffering from late payment and cash flow issues, then it’s possible to release money tied up in unpaid invoices thus keeping your working capital healthy.

Invoice finance, factoring and invoice discounting are all ways that companies can raise cash for those essential bills and supplier payments, as well as keeping cash flow healthy enough to allow expansion and growth plans to get off the ground.

Select Factoring has a range of invoice finance solutions, ideal for a whole range of businesses.

 

 

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