Factoring helps SMEs fulfill hopes for 2009

05/02/2009

A survey carried out by leading independent factoring firm, Close Invoice Finance, has found that the vast majority of small and medium sized enterprises (SMEs) expects to survive in 2009, despite the recession.

With many small firms using factoring to free up much-needed cash at a time when credit is scarce, SMEs have a brighter outlook in the year to come. The survey of more than 500 SME owners found that only 4% thought they might have to close their business in 2009, with 45% expecting it to stay the same size over the year.

Some 67% of those asked said they expected to retain the same number of employees in 2009 and 14% said they expected to recruit new employees this year.

Close Invoice Finance claims that one in five SMEs expects to expand this year despite the recession. Its chief executive officer, David Thomson says that factoring has a lot to do with this positivity.

“While I applaud the government’s proposals to reignite lending to small businesses, it remains to be seen how quickly they will provide any relief. We need to help SMEs use all the tools at their disposal to secure funding that will enable them to weather this current economic storm,” says Thomson.