West Midlands SMEs unconvinced on recession status

MORE than a fifth of SME owner managers across the West Midlands are sceptical that we’re truly out of recession according to results of the latest Close Brothers Business Barometer.

The survey, which aims to gauge SME sentiment on a number of financial issues, also showed that 18% of respondents feel that trading conditions for their business are worse than they were this time last year.

Martin Baker, regional sales director for Close Brothers Invoice Finance in the West Midlands, said: “It’s clear that many firms are finding it exceptionally tough to do business in the current economic climate. The Business Barometer demonstrates just how tough that environment is; as many as 22% of local firms told us they have considered closing down within the last year.”

A further 10% admitted that they have been unable to secure additional bank finance in the past six months.

Baker suggests SMEs need to be made more aware of other types of funding options.

“There is definite potential for growth in the current climate, but to fully maximise any opportunities, companies will need to carefully consider their financial strategy,” he said.