Skip to main content

UK SMEs hesitant to pursue growth.

Demand for business finance remains low, with fewer than one in five UK companies planning to raise finance in the next 12 months, according to results of the latest Close Brothers Business Barometer.

The survey also revealed that of the firms who plan to raise finance, just 27 per cent will utilise bank funding, while one in five UK business owners will turn to family for financial support. A further 18 per cent will rely on credit cards to finance their business.

David Thomson, CEO of Close Brothers Invoice Finance, said:

“Our findings seem to suggest that many firms are holding back from investment in the present climate, adopting a rather cautious approach to growth.

“While we can understand a conservative approach it may mean that businesses are missing out on opportunities for increased commercial activity, thus impeding on the pace of recovery. Technology and business processes progress so rapidly that SMEs may find themselves struggling to keep up with the competition if they do not proactively invest in their business.

“Almost one in five businesses surveyed claimed that trading conditions have deteriorated over the last 12 months. Meanwhile, half of businesses polled admitted the situation has not improved in the last year and conditions are still tough."

“If their economic outlook is to improve, it’s important that businesses raise their ambitions and reconsider their financial strategy. Our figures suggest that many are unsure of the funding options available to them, in fact, more than half of UK firms remain unaware of the benefits of invoice finance and asset based lending.

“These are fast growing products that allow a business to raise cash instantly against the value of its unpaid invoices or assets such as property and stock, and can therefore help a business overcome what is often its greatest impediment to growth – weak cash flow.

“We encourage SMEs to consider a wider blend of financial products to suit their needs – it may just allow them to reconsider their growth aspirations.”

Contact us

Close Brothers Invoice Finance
Ridgeland House
165 Dyke Road, Hove
East Sussex, BN3 1UY

T: 0127 305 9530 *

*Freephone from landlines

Keep in touch