A recent industry survey revealed that over three quarters of small businesses are planning pay rises this year. For workers across the UK this is cause to celebrate, however such signs of rising confidence amongst SMEs could trigger a spike in interest rates, putting a squeeze on finances unless wage rises are matched by an increase in productivity.
On a positive note, research by the British Business Bank has shown that there is an increasing emphasis on growth rather than survival amongst SMEs.
The Western Union Business Solutions International Trade Monitor also found that 89 per cent of businesses are either very confident or confident in the sustainability of this positive outlook.
However, caution is still required over this improved buoyancy as the research also found that cheaper competitors represent a major concern for 62 per cent of SMEs, whilst fears over cash flow have risen to 58 percent.
Asset finance can be a valuable way to help boost productivity. However, some SMEs lack an understanding of the benefits it can bring to operational scope and resilience.
As the aforementioned survey revealed, 68 per cent of businesses are confident in their ability to obtain external finance, but some significant barriers remain, including a lack of awareness.
Specialist providers like Praetura Asset Finance can be invaluable in offering the best advice and affordable funding plans with flexibility ensuring that productivity can be sustained in a changing economic landscape.
For more information on how Praetura Asset Finance can help you, call us today on 0333 323 7800.