While in current climates it’s common to hear about businesses shutting up shop, there’s been an intriguing trend towards entrepreneurship stretching back across last year. It might be a tough economic time for many of us, but perhaps this is pushing many people to go that extra mile and start their own business – perhaps in response to redundancy. All this is encouraging news as it shows the economy it still buzzing in certain areas, and that many people haven’t been put off by all the economic doom and gloom.
According to research by Creditsafe, 470,000 new companies were registered by the end of 2011. This indicates an 18% rise on 2010 figures, and though insolvencies are thought to have risen by 4% over the same period, there will still have been a net gain of 455,000 new limited companies. This doesn’t include sole traders, who represent a large proportion of start up businesses each years, as they are difficult to quantify.
Certain areas have seen a high percentage of these new companies being founded. Unsurprisingly, London leads the way with 160,000, and the South East regions saw 60,715. Further north, Yorkshire saw 46,100 businesses founded and the Humber also had a significant rise with 28,800.
All these new businesses mean that funding will become an issue for even more companies. Having the cash flow to grow when you’re in the start up stages is a tricky proposition for many businesses, made even more so by the increasingly stringent bank lending requirements that are being asked for.
If you’ve just started a business and are looking for quick, flexible and affordable funding, then invoice finance could be worth a look. If you issue invoices to trade customers on a 30, 60 or 90 day basis then we could help you release the funds tied up in your invoices within 24 hours. Instead of being kept waiting for payment, you can get quick access to those funds that you need.