It hasn’t been the most uplifting news week for UK SMEs; after the positive announcements that the Government was going to be taking major strides to boost small company lending, new figures have served to illustrate that many of these firms are still struggling despite the reported progress the country is making out of the economic recession.
SMEs have been praised for their role in fuelling the UK’s economic recovery but we reported in our blog earlier this week that one in five of these businesses would struggle with a rise in interest that came with returning prosperity. This illustrated that many were actually clinging on to existence thanks to flat rates, meaning there was little pressure on growth.
New data from online debt recovery law firm Debt Guard Solicitors has stated that the average trade debt of an SME stands at £1.3 million. In total, in the last financial year the research found that the 9,100 SMEs examined had £6.3 trillion of debt.
Much of this can be attributed to the ongoing issue of unpaid and outstanding invoices, with many small businesses waiting for long period until clients – often larger companies – make payments. Debt Guard states that 12 per cent of UK micro-businesses (those with fewer than 10 employees) had dangerously high trade debt levels that reached one third of annual turnover.
It is worth remembering that what can often be perceived to be negative news can actually be music to the ears of a savvy businessperson. Essentially, these businesses that might be struggling with debt could still hold value for a company or individual looking to bolster their own growth – the need to sell assets to remain afloat amidst all this debt could present attractive opportunities for potential buyers.
As the country’s economic fortunes improve, these two pieces of news this week make it seem likely that the ‘wheat and chaff’ will become separated, with the former possibly being able to engulf that latter should it keep a keen eye out for the latest opportunities. 
The company is an automatic and industrial door supplier, installing a variety of systems, including but not limited to, automatic doors, fire resistant shutters, entrance barriers, roller shutters and garage doors.
Well-established company operating for over 23 years. Offers a range of driving positions, which include day runs, local runs, local shunting, nights out and tramping.
The company is a business-to-business wholesaler of cask ales, continental lagers, and craft cider. Since its establishment, the business has cultivated strong relationships with high-profile and local breweries, gaining exclusive access to their pro...
Please choose your settings for this site below. For more information please read our Cookie Policy
These cookies are necessary for our website to function properly and provide you with access to all features.
These are analytics cookies that help us to improve the way our website works.
These are used to improve the functional performance of the website and make it easier for you to use.