Britain’s economy is expected to have clawed its way out of recession when figures on Q3 emerge later this month, but still there is plenty of room for improvement. While our economy is in better shape than much of the Eurozone, especially Spain, France and Italy who are in recession and are likely to remain so for the time being, economists are still seeing the UK economy as flat-lining – unless something more can be done.
The message from economists is that although the UK will technically not be in recession any more, the economy has been flat since 2010. The services sector is ambling along while the construction and manufacturing sectors are yet to properly stabilise, according to the latest figures. While the worst is hopefully over, there’s no guarantee that the economy will return to wider growth – and of course, there are likely to be continuing small ups and downs.
Economists say this general stagnation is due to companies and consumers alike hunkering down – companies don’t need any more staff and are unwilling to invest in growth, whereas consumers are cutting back on spending across the board. Banks are also largely unwilling to lend to small businesses, though there are various government schemes emerging to tackle this issue.
In particular for small businesses, the unavailability of funding has had a knock on effect for business confidence – many SMEs are being turned down for lending, meaning they are unable to look towards growth. This again causes the flat-lining mentality prevalent in large sections of the economy – what is needed is greater availability of funding to boost the small business sector.
If your business is feeling flat from lack of funds then invoice finance could help. You can unlock the funds tied up in unpaid invoices, helping you to improve your cash flow and make growth a real possibility.