Partner Article

Yorkshire businesses hopeful for future growth in 2013

Businesses in Yorkshire suffered a slow first quarter of 2013 with only 18 per cent of businesses in the region reporting an increase in new customers, compared to almost half in the previous quarter.

But looking toward the second half of 2013 almost a third, 31 per cent, of SMEs are still hopeful about the future and the level of firms which have taken on new staff has increased significantly from seven per cent in the previous quarter to 22 per cent in Q1.

The findings have come from the latest Business Factors Index produced by the UK’s leading independent invoice finance provider Bibby Financial Services, which has been assessing the outlook and performance of SMEs in the region during the first quarter of the year.

In addition the level of new orders has increased from 20 per cent 12 months ago to 31 per cent in Q1 2013, which suggests that while the first three months of the year have been a challenge there is better news to come and businesses are gearing up for a better Q2.

Key findings from the Q1 Business Factors Index for Yorkshire and Humberside:

· 18 per cent reported an increase in new customers over the past three months compared to 46 per cent in Q4 2012

· 31 per cent say they are doing well and hopeful about the future

· 22 per cent have recruited new staff in the past three months compared to seven per cent in Q4 2012.

· 31 per cent have reported new orders compared to 20 per cent at the same point last year

Mark Storey, spokesperson for Bibby Financial Services in Yorkshire and Humberside, said: “It has not been a very encouraging start to the year for SMEs in Yorkshire but despite the doom and gloom, orders are up on this time last year with almost a third reporting an increase in the past three months compared to just a fifth this time last year.

“However many businesses have also said they want to see the rules around lending criteria loosened as they feel the more traditional sources of finance are still very reluctant to lend. That is why it is so important for business owners to be aware of all funding options because alternative finance is now playing a key role in providing support.

“This year has seen a renewed focus on the role of alternative forms of finance in supporting businesses, particularly when it comes to schemes such as Funding for Lending. This has recently been extended so that invoice finance providers can tap into funding from the Bank of England, to pass on to businesses looking for funding.”

This was posted in Bdaily's Members' News section by Mark Lane .