The Liverpool Echo reports today that a Lloyds Bank study of North West small firms, many SMEs are qualified for loans but problems with managing large outstanding receivables damages the company credit profile.
Lloyds' recent report on SME market segment uncovered some startling creditworthiness indicators. The report reveals:
... More than half the North West’s small firms (54%) are confident about investing for growth this year – but many are sitting on untapped assets and are owed thousands in unpaid bills…
...the average North West small company has £223,000 of assets, but is owed £56,000 in unpaid invoices…
...The UK as a whole has a total of £770bn of untapped assets in small firms – equal to 48% of the UK’s GDP – while they are owed a total of around £291bn by customers…
Lloyds believes many firms are ignoring alternative funding options to help them expand and grow. Clare Boswell, area director of Lloyds Bank Commercial Finance in the North of England, said: “Our research found that more than half of SMEs (small- to medium-sized enterprises) in the North West are more confident about investing in growth this year than they were 12 months ago.
“Despite this, SMEs are missing out on the opportunity to recruit new staff, break into new markets or develop new products because they are not harnessing the full range of funding options available that could unlock the value in their assets or invoices to help them grow.
“As a result, businesses are turning down contracts that they think they cannot afford to fund and are holding back their own growth potential.”
SME's need to better assert convictions to move forward with growth plans and the confidence to approach lenders and capital providers to fund business growth.
Credit|Redi is a critical tool used by SME's to improve financial health and demonstrate creditworthiness to lenders and capital providers.
Risk: credit, market, opportunity, sme