Most SMEs are planning to grow and profits are stable
BVA BDRC today publishes its quarterly SME Finance Monitor: http://www.bva-bdrc.com/wp-content/uploads/2019/09/BVABDRC_SME_Finance_Monitor_Q2_2019.pdf
The largest and most frequent study of its kind in the UK, research findings have been gathered across 33 waves of interviews since 2011 and are based on more than 150,000 interviews with SMEs.
The data to year ending Q2 2019 published today provides further updates on SME sentiment as negotiations over Brexit continued.
Shiona Davies, director at BVA BDRC, commented:
“ We are living through uncertain times and this is being reflected amongst SMEs. They remain profitable, but more see improving profit margins as a priority. An increasing proportion are planning to grow, however there is also an increasing gap between growth achieved and expected. Use of finance has increased, yet appetite for finance and new applications remains limited. Most applications are made to the main bank for loans or overdrafts, and most of those who apply are successful, but there are signs of more SMEs considering self-funding alongside, or instead of, an application for finance. Future appetite for finance remains stable, although an increasing minority of SMEs are looking to reduce their use of external finance.”
Chirag Shah, CEO, Nucleus Commercial Finance comments on the BVA BDRC SME Finance Monitor:
“Although Brexit continues to dominate the headlines and SMEs still cite political uncertainty as a major barrier to business growth, it’s encouraging to see that they remain ambitious. Half plan on growing their business over the next 12 months, compared to just 43% before the 2016 referendum, with increasing numbers using external finance to fulfil their business ambitions.
“SMEs underpin the UK economy and it’s vital that we as an industry help support them during this challenging period. We’re here to reassure businesses that there are alternative finance options available, which offer flexible and tailored solutions to help them to stay ahead of the competition.”