If recent studies are anything to go by, British business is on the up. However, economic growth is much slower than hoped by government officials. This is partly due to the reluctance of new small and medium sized enterprises (SMEs) to invest in their business as they are concerned about the economy’s stability, and as a result few are willing to take any unnecessary risks with their profits.
A study by established finance provider Lombard revealed that UK businesses are trailing far behind its International competitors such as Germany, Italy, Switzerland and Mexico with regards to investing in specialized production machinery and equipment, and the fall out is that many companies are losing out on business as they simply cannot operate to the standard expected by consumers.
The statistics speak for themselves, as their research shows that SMEs are turning down over £5 billion worth of orders, purely because they will not upgrade their systems or replace faulty equipment.
Despite the fact that they are running the risk of losing further clients due to poor operating standards, as well as ending up with permanently damaged, outdated machinery, many SMEs will continue operating in this way until such a time as funds can be pooled and released as they have lost confidence in approaching high street banks.
However there are other alternative lending options available that can alleviate this problem and get our small businesses up and running to maximum potential, thus boosting our economy in the process.
As the Government works hard to rebuild our country’s financial status on the global business map, it is looking to raise awareness of the many lending options available to SMEs so that they can invest with confidence and take their business to the next level with the latest technologies. Having access to valuable funding can enable businesses to advertise successfully, plug any debt gaps and train new staff. A business could also invest in a website, open a second shop location, or of course, update equipment so that competition and demand across Europe is met with the latest products and developments.