With the well documented trouble in the Eurozone, many small businesses are beginning to question the future of British sterling. Though many have been looking to exports to improve their cash flow, the recovery that the government has been hoping for is still stuttering despite increased focus on small business funding.
Research has revealed that almost a third of small businesses that were interviewed think the British pound will be replaced within the next two decades. Though many businesses are seemingly becoming more confident, this statistic does not demonstrate any confidence in long term economic prospects.
The government has hoped for an export led recovery due to a weak pound. Despite this, there is still a high proportion of small and medium businesses who have not experienced a rise in export sales – around 68%.
A further two thirds of UK SMEs do not believe that the UK government is doing enough to help small businesses. 26% also believe that the pound will not strengthen or recover quickly. Eurozone concerns are still top of the list, and many small businesses believe there will be a break up of the single currency. A third of those interviewed have also put contingency plans in place in case this happens.
Though the government considers small and medium businesses to be a vital ingredient for the UK economy, schemes that have been put in place are not benefiting the whole sector. Funding targets have been missed, and banks still remain unwilling to lend despite being given incentives to do so.
There are still fears despite an increasing business confidence. Export led recovery is not yet predominant, and uncertainty from the weakness of the pound.
If your business is looking for ways to increase cash flow and allow growth, then factoring and invoice discounting are two means to do so, without having to be too preoccupied with overseas fluctuations. While exports are an important part of business expansion, it’s not the only option if your business needs to improve the health of your bottom line.
By releasing cash flow tied up in unpaid invoices, invoice financing and factoring can ive your business more money to play with to reinvigorate expansion and recruitment. With that extra boost, many SMEs could be well on the way to recovery.