Spring is definitely in the air. As the weather heats up, and we are able to throw open our windows and patio doors, there’s definitely a new, fresh energy out there. Especially after the PM announced his exit strategy from coronavirus restrictions. A pub beer garden for Easter is a welcome idea for most of us!

A year ago, even with the threat of a new virus that may or may not make its way over to us from China, none of us expected to have gone through what we have collectively experienced over the last year. We were plunged almost overnight into the starkest economic downturn for 300 years, and it’s safe to say that many businesses immediately entered survival mode. And there they have stayed for the last year – just getting through it. But now it’s time to brush ourselves off and get back to what we do best – achieving growth.

The UK is out of recession

We have avoided a double-dip recession, thanks to Brexit stockpiling in Q4 of 2020. Our economy showed signs of recovery, and although the third national lockdown will of course have had its impact, the lightning-fast effort by the NHS in rolling out the vaccines to the adult population means we should be well on our way to economic recovery by Q3. A miracle indeed.

We’re not saying we are out of the woods yet, and we fully expect that Q1 has been a bit of an economic write-off, though less so than last year as people and businesses have had time to adapt to this new way of life. But, we can certainly now see the horizon, and beyond it, economists are forecasting a sustained and rapid recovery throughout the remainder of 2021.

Boris told us that we are travelling on a “one-way road to freedom” and with the prospect of being pretty much out of all restrictions by summer, this glimmer of hope for the future should also have a positive impact on the UK’s business outlook.

Hope for the future

Even before the PM announced his roadmap out of lockdown and back to normality, the outlook was brightening. Deloitte’s most recent survey of CFOs showed that the vast majority of CFOs (71%) are expecting revenues to rise in the coming year.

As the backbone of the UK economy, it’s over to SMEs to take the baton for economic stimulation and run with it – it’s time to exit survival mode and breathe life back into the economy.

SME growth will fuel economic recovery

Speaking of fuel, as your business grows, so too does its need for capital, and that’s where we recognise the challenges facing UK businesses. 

As your business expands it can become even more exposed to slow paying customers. Late payment has always been an issue for UK plc, and the impact of the pandemic has seen UK businesses suffering even more as a result of late payment(though not as much as first forecast). There is also the often overlooked opportunity cost of the hours spent chasing debt rather than focusing on operations.

It’s disheartening to think that businesses might turn down work and leave opportunities unexplored because they lack the time or the capital to fund growth.

How can Invoice Finance help fund growth?

Borrow without clunky fixed repayment schedules

Invoice Finance is a flexible form of borrowing that can help businesses access the working capital they need to grow without taking on term debt with hefty repayment schedules or personal security to support. It does this by using, what for many companies is their largest asset, their outstanding invoices. The facility is repaid as invoices are settled and fresh access to funds provided as new invoices are raised.

Enables planning

Rather than being held to ransom, deliberately or otherwise, by your debtors, you will know exactly when you will have capital, and how much you will have to play with. Planning for projects and seizing opportunities becomes a much more forecastable exercise with this kind of insight.

It grows with you

A bespoke, totally personal borrowing plan means you increase your borrowing capacity as your business grows. If you are growing quickly this gives your business the flexibility to keep up with your overheads giving you the capacity to commit to fresh sales, ensuring there are no gaps in business continuity.

Frees up your valuable time

With an invoice factoring arrangement, we take over your credit control function entirely. The time you spend chasing debt can therefore be used to concentrate on your core business and doingwhat you do best.

We want your business to thrive as much as you do

We are more passionate than ever about fuelling the recovery of the UK economy by providing SMEs with the financial resilience and agility that invoice finance can provide. Not only can invoice finance help mitigate the payment practice degradation many are experiencing, but it can also enable businesses to really go for gold and come out of this economic downturn fighting.

For the UK to achieve the speedy and sustainable economic recovery that the Bank of England claims we will, we all need to be playing our part in encouraging consumer confidence, responding to rapidly changing market conditions, and seizing all growth opportunities wherever possible.

According to the British Business Bank, more than 40,000 UK SMEs already use Invoice Finance and Asset-based lending to fuel their business growth. Take the first step to joining them by contacting us to discuss your eligibility.