Firms see business confidence return amongst high recommendation levels for invoice discounting for finance
Credit conditions for UK firms remain difficult but a new survey has found that most users of invoice discounting and factoring recommend it to other businesses as a much needed source of finance, as the economy starts to make a turnaround.
The clear majority of UK SMEs polled who are using invoice discounting and factoring would recommend it as an essential form of funding. The Asset Based Finance Association commissioned a YouGov survey that polled small businesses that are using invoice discounting or factoring. The survey assessed the views of SMEs regarding the economic environment and discovered that 82 per cent said they would recommend it to other businesses in a similar position.
When asked what the single biggest benefit of using invoice discounting or factoring was, by far the biggest answer was the immediate access to finance. Sixty five per cent of SMEs said this was the biggest benefit.
Business sentiment also seems to be improving. Seventy one per cent of SMEs polled are either very or slightly optimistic about the future, indicating that while the economy hasn't pulled through quite yet, small businesses are at least confident that things will improve.
However, while firms might be broadly optimistic about the future, they still firmly believe that the recession is still affecting them, with 85 per cent of SMEs polled saying that they do not believe they are out of the recession yet.
Kate Sharp, chief executive of the Asset Based Finance Association, said: "The picture for many small and medium sized companies in the UK is, perhaps surprisingly, one of confidence for the future. While most clearly think the recession is still currently holding, it's great to see that business sentiment is at least looking more positive further afield. This is undoubtedly helped by being able to access finance and firms are clearly seeing invoice discounting and factoring as one of the main ways to source much needed funds for growth."