More than half of the UK’s SMEs are expecting to see growth of more than 10% over the next year, a new report from SAP Limited has revealed.
Even though the economic outlook remains bleak, 96% of all SMEs are expecting to see some sort of growth as optimism is reigning.
Director at SAP Limited, John Antunes, felt that businesses were getting to used to an uncertain economic climate: “We've been in this economic climate since 2008, long enough to know that this is the new norm.”
He continued: “SMEs are no longer waiting for the economy to recover; they know they have to drive this recovery themselves.”
Finance for SMEs remains the biggest driver of growth, but it is also the most problematic for many.
63% rely on an overdraft to fund their business, but they can suffer from the inflexibility of such facility and the fact that banks have the ability to be able to recall this cash at short notice.
Invoice finance as funding solution
They work to provide your business with increasing levels of cash as you issue more invoices, unlike inflexible, rigid facilities such as bank overdrafts.
More than £17bn worth of funds were provided by the invoice finance industry to UK and Ireland firms in 2012.