With the British Chambers of Commerce upgrading their 2015 UK growth forecast from 2.5% to 2.7% the UK economy is finally seeing some green shoots, and nowhere is this truer than in London and the South East.
Not only is private business investment on the up in 2014 and business leaders more positive about the outlook for business growth prospects in 2015, but public sector investment in major projects such as London Crossrail (stations due to open 2018) and the expansion of one of the major airports, mostly likely Gatwick (a recent poll of 1,036 Londoners shows that when given the choice, 45% chose Gatwick, compared to the 39% for Heathrow, as the location for a new runway), is helping to build considerable positive sentiment, allowing the year to start out on a steady footing.
However, businesses must take into consideration issues such as a weaker euro for trade export, the possibility of an interest rate rise in Q1, and the ongoing reservedness of high street lenders when it comes to supporting SME businesses.
These factors may play some part when looking at business growth in areas such as recruitment, house building, international export and more, but with potential for a greatly improved local economy - with better transport links and investment in infrastructure, high levels of UK consumer confidence and a low baserate (with Bank of England advising that interest rates will only move up slowly and steadily over a period of a few years) - the soil seems ripe to grow fruitful business roots that can maximise the opportunities in a post recession era economy.
Most successful business models put effective cash flow management at their core.
With a flexibility to scale up investment in capital expenditure, recruitment and even acquisitions of competitors or complementary businesses allowing for growth and capturing market share when opportunity knocks. But with many businesses reliant on timely payments by customers on invoices due, this often leaves you at the mercy customers and their accounts payable teams to make payments before invoices become overdue, or even working to alleviate pressure often applied by 60+ day terms.
When your business is in need of cash flow and you have a solid sales ledger and sizable customer base, then invoice factoring can play a lead role in helping you to release funds tied up in invoice payments due.
The UK invoice finance sector is worth an estimated £50+ bn and growing. It is become a widely accepted practice that allows SMEs to put the cash from invoices due to work even before the customer has paid them, by working with a factoring company to release the funds due on invoice as soon as the invoice has been raised by your business.
In this way many companies are taking advantage of new opportunities that a better economic climate is providing - from accessing larger deals as cash flow for wholesale purchase is now available, to increasing workforce scale for new projects with a confident payroll which is not strangled by late paying customers - SMEs can reap the rewards of a recovery with the knowledge that high street banks are not the be all and end all of SME business finance.
What is your business goal for 2015?
Have you got the right support in place to ensure your business can see healthy growth or is it still in the stranglehold of the big banks lending criteria? If so then maybe invoice factoring is your new business weapon of choice for 2015! With a number of factoring companies in the marketplace, it’s best to understand who offers the best deal for your business type and where the best deals are to be had.
Why not have a look at our top tips for presenting your company to UK invoice finance companies.