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Small Business Confidence

Business optimism in the UK economy is shaky at best, however, small businesses are leading the way with a significant degree of business optimism. While many are still struggling with cash flow and late payment issues, and UK economic prospects are not yet looking too promising, there is still business confidence out there.

Over the last six months, small firms have lead the rise in business optimism, according to a survey intervieiwng 2,500 businesses. This concluded that business confidence amongst SMEs was rising at a greater rate than larger businesses. Small business confidence has risen 6 points to 88, compared to an increase of just 4 in the economy in general.

Small firms have been particularly pleased with a growth in revenue, with an 8% rise in takings compared to 7% with large businesses. However – the economic outlook is still not looking good. Business confidence is still below the 100-point baseline. More than two thirds of the businesses interviewed did not believe the UK economy would recover properly, or even begin to show signs of growth, until 2013 at the earliest. With the recent news of the double dip recession, this seems to be an accurate prediction.

The biggest obstacle to a greater growth in small business confidence is the unavailability of affordable funding. Cost-effective capital is essential for businesses who are looking to grow, which this year includes nearly half of small businesses.

Essential for this growth are alternative finance measures which can often be more affordable than business loans and overdrafts. Invoice financing, such as factoring and invoice discounting, can free up capital tied to invoices giving small businesses the cash flow to grow.

In order to ensure stability and growth, limiting debts is essential but this should not come at the expense of grow. Instead, invoice financing can make growth possible as well as avoiding taking on long term and expensive debt.

For small business finance solutions that can help to give you optimism, Select Factoring is the place to come.

 

 

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