Almost half of small businesses expect their turnover to increase in 2016, research finds.
According to a study by alternative SME lender Fleximize, just one in ten (10 per cent) believe the financial health of their companies is ‘poor’ or ‘very poor’, just over one in three (35 per cent) describe it as ‘good’, and 4 per cent say it is ‘excellent’.
This level of optimism helps explain why 49 per cent expect their companies’ monthly revenue to increase over the next 12 months, compared to just 16 per cent who anticipate it to fall.
However the findings, based on 129 business owners, reveal that 23 per cent of business owners are looking to secure more funding over the next year than they needed during the past 12 months, and only 8 per cent think they will need less credit.
Max Chmyshuk, founder and managing partner at Fleximize says, ‘Banks are turning down around one in five credit applications from small businesses, and just under one in ten from medium-sized enterprises, and this is fuelling demand for alternative sources of finance.
‘Indeed, this year the UK alternative lending market has been providing over £211 million of credit to businesses and individuals every month, more than double the average monthly figure for 2014.’