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UK Avoids Double Dip Recession

The UK has narrowly avoided going into a double dip recession, as new figures have shown. However, in order to continue growth, businesses need to look to invest and innovate. Even if funding is hard to come by, in order to make sure 2012 is a year for growth and not recession, businesses need to look to alternative finance options.

Confidence is beginning to come back, but there still needs to be more investment across the small business sector. The government is looking to SMEs to be the life blood of recovery, but this is impossible without greater investment in the sector.

There have been growth forecasts of a disappointing 0.4%, way off the 0.8% previously estimated. This looks to increase to 1.5% in 2013 and 2.6% in 2014.

Last quarter saw a contraction of 0.3% in the economy. The UK has only just avoided two consecutive quarters of negative growth with a tiny improvement of 0.1-0.2% growth in the first quarter of 2012.

Whereas in the US business investment has picked up, businesses in the UK remain risk averse. This is stopping the economy from making a stronger recovery. This could be to do with the more diverse funding options available across the pond.

However, the UK is seeing a growth in alternative funding outside of the traditional banks. Banks are looking to minimise their risk, and as small businesses are often considered a risky proposition, many are being denied funding.

Factoring, invoice finance and asset based lending are all key to improving the funding available to the small business sector. These can all free up funds from unpaid invoice, solving cash flow problems and letting businesses invest in their own growth.

Rather than relying on bank funding to get access to funds, it is possible to release funds quickly and easily. With bank funding being out of reach for many businesses, looking for alternative funding is essential.

Select Factoring offers a range of solutions for small businesses looking to reinvigorate growth and expansion plans.


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