Is it now time for the Government to rethink Plan A?
With the longest double dip recession since 1975 dragging down the prospects of economic recovery, surely now it is time for this government to consider its approach to bringing the UK out of recession.
The business owners we talk to tell us more government support and a focus on stimulating consumer confidence are key to getting SME businesses back on track.
Over the past 12 months we have seen a raft of different funds and schemes which have been launched with the aim of releasing finance to businesses, but SME owners we talk to feel they are not reaching the smaller, most vulnerable firms.
In fact, many question the wisdom of using the banks as the conduit for those funding schemes, given the perceived resistance they have towards backing SME and start-ups, precisely at the time when business requires support to grow.
However there are some positives to take out of the first six months of the year as we have seen a significant increase in the level of business turnover among firms using invoice finance.
The latest sector figures from the Asset Based Finance Association show that turnover from companies using invoice finance grew six per cent year-on-year. With this in mind, at Bibby Financial Services we feel there should be more focus on alternative sources of fundingfor SMEs going forward.
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