Small Business Borrowers Business Picks Up – But Are Their Finances Following?

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According to the Confederation of British Industry, prospects for small businesses' export is at a 15-year high – but are these small business taking advantage of the upturn with new, better financial products?

Small and medium-sized manufacturers are starting to benefit from the relative weakness of Sterling, with overseas orders stabilising after seven quarters of decline, according to the CBI. Of the small businesses they surveyed, 27% said the volume of export orders rose in the three months – after nearly two years orders are coming in and more money is being made by hard-working small businesses in the UK.

And these export orders are expected to grow more strongly in the next quarter, and firms are the most optimistic about export prospects for the year ahead since October 1995.

Russel Griggs, chairman of the CBI’s small business council, says: “Small and medium-sized manufacturers are expecting overseas orders to grow in the coming months, and are the most upbeat about export prospects for fifteen years.

“However, with the economy only just edging out of recession, conditions will still feel pretty challenging for smaller firms. Domestic orders are likely to remain depressed, and firms are expecting output to fall in the next three months.”

So sales are up now, but how can you take advantage of this purple period if you are a small business? The world financial regulators are proposing that big banks have 'counter-cyclical' capital reserves – savings in the good times to pay for the bad – so how can you do that for your small business?

Talk to a small business financial adviser. They can introduce you to new mortgages, loans, savings products, investments and pensions to help you save now and take advantage to increased revenue. They can help you make sure that if another downturn is around the corner, your business will be well-prepared.

SOURCE: CBI, 01/02/10

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