Factoring Finance blog – business confidence low

According to research from the latest bi-annual SME Pulse survey from Aviva, only 13% of those businesses surveyed anticipate economic improvement throughout the rest of 2011 and almost one in 10, (9%) fear they could go out of business if trading conditions do not improve.

The results revealed that business confidence has dropped by 5% since the end of 2010, when 18% believed the economy would improve in the coming year. Meanwhile, accountancy firm Ernst and Young has recently reduced its forecast for growth of the UK’s gross domestic product (GDP) this year, from 1.8% to 1.4%.

High inflation rates along with wider, global fiscal developments, such as the recent economic crisis in Greece, are being blamed for the slowdown in the UK’s GDP and subsequent drop in business confidence. However, growth opportunities, both at home and abroad, are becoming more prevalent for SMEs in a position to capitalise on them.

Factoring Finance has a UK wide, independent broker network able to source the best deals from numerous small business finance providers.