Business expectations 'improving'

28/03/2008

The expectations of businesses in Scotland have improved in recent weeks despite a fall in the typical turnover of firms north of the border.

Lloyds TSB's Business Monitor suggests that turnover levels are decreasing for 28 per cent of Scottish companies but around 23 per cent are confident of boosting their activities over the next six months.

Companies with cashflow concerns often turn to debtor finance providers for solutions and Lloyds has pointed out that while the rate is slowing, there is still growth in the Scottish economy.

A year ago, almost two in five Scottish firms expected their turnover figures to improve over the next half-year, but the banking group has noted that optimism on the same basis appears to be picking up.

Professor Donald MacRae, chief economist, Lloyds TSB Scotland, commented: "After above trend growth in 2007, the Scottish economy is facing reduced growth in 2008 nearer to its long term growth rate."

A report for the Western Mail recently suggested that asset-based lending deals are becoming increasingly available to businesses across the UK.