Connect with us

Hi, what are you looking for?

Investing

UK SMEs to invest an average of £150,000 as post lockdown optimism grows

Business

The UK government’s plans to ease lockdown restrictions have seen a surge in optimism from SMEs, according to a new survey

The survey also highlights the fact that three quarters of business owners share a positive outlook and 74% believe that demand will be back to pre-pandemic levels by Christmas.

SMEs across the country have begun outlining their plans to return to a more open economy with 6 in 10 seeing the acquisition of new customers as the main reason to be optimistic.

As a result, the average SME intends to invest £150,000 in the coming months, with those in the construction and transport sectors planning to invest even more.

Three-fifths are planning to dedicate a portion of investment to staff training and development or new hires. This means that nearly a third of the UK’s 6million SMEs are planning on increasing their workforce, a powerful boost for the nation’s economy.

Jonathan Andrew, Global CEO of Bibby Financial Services, who commissioned the research,  said: “The UK’s SMEs have had an incredibly difficult year, and it’s fantastic to see that the vast majority are optimistic for the year ahead. It’s hard to predict what the long-term impact of the pandemic on the UK economy will be and it’s unlikely that it will become clear for some time yet. However, as demand begins to return to normal and SMEs look to meet it, cashflow is going to be key.”

Despite the optimism, SMEs are owed an average of £116,376. This sum is significant and represents a huge working capital gap, with more than a quarter of SMEs (26%) saying they need cashflow support more than ever. Furthermore, SMEs who have suffered from bad debt during the pandemic are twice as likely to say their business is still in survival mode.

Added to this, the government-backed loans that were a lifeline for so many of the UK’s SMEs will need to be repaid. According to estimates from the National Audit Office (NAO), the Department for Business, Energy and Industrial Strategy (BEIS) and the British Business Bank (BBB), between 35-60% of borrowers may default. BFS’s findings show that while 55% of SMEs plan to repay these loans via company profit, almost two-fifths haven’t yet considered or don’t know how they will repay these loans.

Jonathan Andrew continued: “The support provided by the government during the pandemic saved thousands of businesses, but as economic activity begins to pick up, SMEs need to start considering more sustainable forms of funding. Invoice Finance is exactly that. It unlocks the capital locked up in unpaid invoices, and it scales with a business as it grows.

“We’ve been supporting SMEs from across the UK for over 40 years and recently launched our Pandemic Recovery Fund. The fund has opened up £300m of funding to support SMEs as lockdown restrictions are lifted. We know that SMEs will power the recovery, and we’ll do our part to help power them.”

Read more:
UK SMEs to invest an average of £150,000 as post lockdown optimism grows

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Latest

Economy

Foreign portfolio investments (FPI) yielded a net inflow in May, reflecting renewed optimism in the local economy as restriction measures were gradually lifted during...

Economy

Outsourcing firms in Philippine economic zones will need a long-term remote work considerations to remain competitive against other major outsourcing economies, an official from the industry group said.  ...

Economy

The World Bank approved a fresh $400-million loan for the Philippines which will be used to support financial sector reforms as the country recovers...

Economy

Philippine President Rodrigo R. Duterte on Thursday night urged the Congress to pass his administration’s last two tax reform bills.  In his speech during...

Economy

The prolonged COVID-19 pandemic is clouding economic projections for Southeast Asia, with most countries not expected to return to pre-pandemic growth levels for several...

Economy

US President Joseph R. Biden, Jr. has extended his sympathy over the passing of former Philippine President Benigno S. C. Aquino III, recognizing his efforts in promoting...

You May Also Like

Investing

Having a good Instagram marketing agency to back up your Instagram account is an absolute must going into the new year. With competition stronger...

Investing

As a traditionally rigid insurance industry becomes bogged down by antiquated processes and operations, a handful of industry leaders are seeking to shake things...

Economy

US President Joseph R. Biden, Jr., will rely on ally countries to supply the bulk of the metals needed to build electric vehicles and focus on...

Economy

THE Securities and Exchange Commission (SEC) has warned the public from investing or to stop any investment in a group named Maxxprofit Computer Trading...

Disclaimer: SmartRetirementReport.com, its managers, its employees, and assigns (collectively "The Company") do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2021 SmartRetirementReport. All Rights Reserved.

Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.



Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!