The
latest figures from invoice and asset-based lender Venture Finance
show some UK SMEs are experiencing tentative growth.
The company’s first Cash Flow
Barometer, a new quarterly survey, shows the average turnover
for small businesses increased by 16.2% between the end of 2009 and
the second quarter of 2011.
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This follows a deep decline in
turnover of 10.5% between 2007 and the end of 2009.
The survey also shows an increase
in the number of invoices small businesses are issuing, up 16% from
the end of 2009, and reveals the average number of days for
outstanding invoice payment has also decreased.
The growth mirrors the findings
of
the ABFA which showed the level of lending made through invoice
finance grew
12% year-on-year to the second quarter
of 2011.
Venture Finance managing director
Peter Ewen said: “Small firms look to be bringing in new customers
and billing them for increasing amounts of business, which is great
news.
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By GlobalData“Such statistics are encouraging
because they point to increasingly healthy cashflow – the lifeblood
of business and growth potential.
“To build on these strong growth
foundations, small businesses need to put the tools in place to
secure working capital for growth.
“This will be especially important for those exploring export
markets, where payment terms and operating styles can differ
significantly.”
