SME’s confidence at record high

According to recent media reports, confidence in the SME sector is increasing as the the economy continues to recover.

However, there are a number of risks that still hanging over the economy, including the prospect of an interest rate rise. Whilst the Monetary Policy Committee (MPC) is unlikely to vote for an increase this year it remains a very likely prospect for the first or second quarter of 2015.

The Federation of Small Businesses (FSB) has also recently reported that its confidence index reached +41 during the third quarter of 2014, which is the highest level on record, with 61% of the 2,137 respondents of their survery expecting to see their businesses grow during 2015.

Business confidence was anticipated to wobble if the Scottish people had voted for independence, but with the Union intact this has provided a further boost to the confidence of UK business owners.

As the economy continues to recover there are still risks that business-owners need to be mindful of. We have seen many good businesses hit the buffers simply because of poor cashflow, having been caught out with an increasing order book but then having to wait 60, 90 or even 120 days for payment. There is only so far a company can extend itself before something has to give.

So, even if your company is cash-positive and that you have a strong order book, it never does any harm for one of our team to have a look over your figures and to see if there are any problems on the horizon that have been missed.

As we always recommend: the sooner action is taken the better.

 

 

«

Call us free & confidentially on: 0800 068 6857
Hart Shaw LLP | Europa Link | Sheffield Business Park | Sheffield S9 1XU | chris@hartshaw.co.uk