UK SMEs hold the key to growth
By Rachel Craft, marketing manager at Regency Factors
Mid-sized businesses in the UK have grown faster and generated a larger profit growth in the last five years than the nation’s large and small companies combined, according to a new report from accountancy and business advisory firm BDO. These SMEs constitute 99.9% of all private sector businesses and employ over 60% of the private sector – 15.6m people.
British mid-sized companies created half a million jobs in the last year – more than the FTSE 350 and small businesses combined. And although they make up only around 0.5 per cent of all companies, they account for one third of all private sector revenue and jobs. With these stats in mind, here’s another. Some 26 per cent of all SMEs have used overdrafts to grow their businesses as they were not aware of how to access finance and even fewer say that their bank does not meet their needs and had been turned away when extra cashflow was needed.
On the commitment from the British Business Bank to provide the SME community with more advice on seeking funding, Maurice Craft, managing director at Regency Factors, said: “The alternative finance industry has achieved a great deal in a short space of time but it is imperative the government now leads the charge, supported by industry groups and industry itself, in order to ensure SMEs get the help they need to grow and that the alternative finance industry cements its position as a mainstream and complementary part of the financial services sector.”
For more than 20 years, Regency Factors has been structuring innovative financial solutions for our clients, many of whom today trust us with their invoice finance, trade finance, asset finance and purchase finance needs. Our goal is to help your business to grow, to put decades of professional financial expertise to work to ensure that this happens, and to do so in an ethical and responsible fashion, offering each and every client the support and guidance they require.
Regency specialises in developing bespoke financial solutions for clients from across a broad spectrum of sectors. We’ll provide you with a rapid response to your needs, a whole-of-industry perspective on solutions, and advice to help you decide.