This week in small business news, it has been revealed that 12% of the UK’s SMEs have had to wait upwards of 3 months to be paid by their customers. The recent flooding has also been in the headlines, amid new pledges in funding to help fix the damage caused to around 2,000 premises.
Feature of the Week
BBBI announces lending to small businesses | Startups.co.uk
The commercial arm of the British Business Bank, the BBBI, has agreed to expand its loans to small businesses. In an attempt to ‘encourage lending to the real economy’ the bank will lend on commercial terms at the same rates as all other investors.
Since July 2014, the firm has only ever lent to sole traders and partnerships.
1 in 10 SMEs to wait 3 months to get paid by suppliers | Smallbusiness.co.uk
According to recent figures, 12% of the UK’s 5.2 million SMEs have to wait at least 90 days to be paid under their customer’s payment terms, with 3% having to wait over 4 months.
Despite revision of such measures as The Prompt Payment Code, which encourages businesses to pay their suppliers within 60 days, this is still an industry problem.
SME growth mindset on the wane | Smallbusiness.co.uk
Although the UK’s SMEs are confident of ending the year in a growth phase, research suggests that this confidence is on the wane.
There has been a 3% decrease on the number of small and medium-sized enterprises who said they would aspire to grow in Q2 this year.
Not enough time off for UK professionals | Smallbusiness.co.uk
Research has revealed that 40% of UK SMEs only shut for the bare minimum of two bank holidays at Christmas, despite 63% of workers believing this isn’t long enough.
The study indicates that the majority of UK professionals aren’t given enough time off over Christmas. Many understand that numerous SMEs can’t afford to close over Christmas, but almost 84% think SMEs should make a bigger effort to embrace the festive spirit.
Funding for flood affected businesses | Gov.uk
New funding has been announced to help around 2,000 small businesses who have been affected by the flooding last week in Cumbria and Lancashire.
The department for business, innovation and skills has pledged £5 million, with funding equivalent to £2,500 per business provided to local authorities. This is on top of additional funding provided by the Chancellor.