Renewed confidence amongst SMEs sparks investment plans
New research shows renewed confidence is translating into investment plans for many businesses.
The last 15 months have been understandably tough for many businesses. In 2020, around 396,000 (about 7% of the UK’s businesses) closed down and SMEs were hit particularly hard.
But, with lockdown measures gradually being eased and the UK’s vaccination programme expanding, new research shows SMEs are positive about the next two years.
And this renewed confidence is translating into investment plans, with research showing businesses hope to hire new staff, launch new products and services and spend on business infrastructure.
The research conducted by MBH Corporation found 61% are positive about their business outlook, with 19% feeling very positive.
Just 6% of SMEs worry their business faces tough times over the next two years.
According to the research, businesses plan to:
- Recruit (25%)
- Expand with new services (24%)
- Invest in infrastructure (21%)
- Open new premises (10%)
- Tap into overseas markets as they launch export drives for the first time (11%)
If you’re also planning to invest in your own business, there are numerous finance options available to support your plans without compromising your cash flow. For example:
1. Invoice finance to boost cash flow and support growth
Whether you plan to invest in recruitment, infrastructure or new products, invoice finance could help boost your cash flow to support your plans.
Invoice finance provides businesses which trade on credit terms fast access to funds that are tied up in unpaid invoices, with up to 90% of the invoice value advanced within 24 hours.
This bridges the cash flow gap between paying suppliers and getting paid and provides the necessary working capital to support your plans, keeping cash flowing.
With invoice finance, the more invoices you raise, the more funding that’s available, making it an ideal solution for many growing businesses.
Read more about invoice finance or get an instant quote below:
2. Business loans to support investment
Loans allow eligible businesses to quickly access money that can be used for any business purpose.
This can be a good option when a business does not have any fundable assets.
As well as traditional banks, there is a large number of newer entrants into the market offering competitive rates and willing to lend money to businesses hoping to satisfy a range of funding requirements.
3. Asset finance to fund machinery purchases
Asset finance is designed to help businesses finance the purchase of equipment they need to operate effectively.
It is a popular choice for financing machinery, as its targeted use means that companies can spread payments over a longer time frame.
This allows businesses to access assets of a higher specification without the cash flow implications of purchasing them outright.
4. Trade finance to support international businesses
If your business imports or exports goods and materials internationally, trade finance can help you reduce risk and get things moving more quickly.
Trade finance can release cash against invoices as well as provide a bank guarantee that gives all parties peace of mind.
Import finance allows businesses who receive orders domestically to purchase goods and raw materials from overseas suppliers without tying up their cash flow for long periods.
While export finance keeps cash flowing when exporting from the UK by advancing payment before your customers pay.
5. Commercial property mortgages to finance new premises
If your business plans to open new premises, or refurbish or extend your existing buildings, a commercial property mortgage could be the ideal solution.
Lenders typically lend up to 70% of the purchase price over a term of up to 15 years.
This keeps working capital free to help the business continue its growth.
How we can help
As an independent commercial finance broker, we can help your business identify and secure the most suitable funding solutions to support your plans.
Whether you want to hire new staff, launch new products and services or spend on business infrastructure, we will listen to your specific requirements and circumstances before using our extensive market knowledge to introduce the most suitable facilities for your needs.