Only 33% of business owners expect their businesses to grow in the coming quarter – a fall of 6% from April of 2012.
Unsurprisingly, the SME Trends Index also revealed that UK businesses were in comparatively poor financial health – at least in relation to the same period in the previous year. The Business Health Index, which rates companies based on their turnover, profitability, arrears, debt and growth, was rated at 0.84 compared with just 0.54 six months earlier. A higher score indicates that companies have grown, increased profitability and reduced debts and arrears, but this encouraging figure did nothing to raise the hopes of Britain’s SMEs.
Crucially, the financial health of those who use invoice finance as a tool for business growth was considerably stronger than those who used other financial services, scoring an impressive 1.30 on the Business Health Index compared to 0.73 for bank overdraft users and just -0.07 for those who rely on personal credit cards.
‘It’s a shame that so many small business owners continue to be so cautious when in many areas there is the potential for huge growth,’ said Gener8 Finance’s David Richards, ‘but it’s indicative of the effect the economy has had on Britain’s businesses over the past few years.’
‘It’s understandable that few would expect much business growth in 2013, but with the economy beginning to regain its feet, now is the time to reach out to new markets and potential clients.’
‘We offer invoice finance and discounting services to give business owners the confidence to pursue growth, even when times are hard.’
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