Optimism is growing among UK SMEs if the latest survey by Premium Credit is anything to go by.
It found that over the next 12 months, 36% of SMEs expect that their income will grow – that compares to 24% who believe it will fall. Indeed some 12% even expect double digit growth in revenue.
Respondents suggested that the main reason for the hope for growth is the recovery from the COVID-19 crisis – with 61% expecting to see their income increase. Another 33% cited the launch of new products and services, while 31% pointed to cutting costs, and 29% highlighted entering new markets.
Meanwhile, among those expecting a fall in revenue, 39% believe they are still suffering from COVID-19, and 31% believe their client base is shrinking.
According to Owen Thomas (pictured), chief sales officer at Premium Credit, the results indicate the importance of premium finance and demand is likely to continue.
“Premium finance is a very cost-effective way for businesses to buy insurance, and better manage their finances and cashflow through spreading payments,” he said. “Demand for premium finance among SMEs could remain high because our Insurance Index, which monitors insurance buying and how it is financed, reveals that 59% of SMEs are relying on credit to pay for their insurance, borrowing on average around £1,832. Some 16% of SMEs claim to be using over £3,000 of credit a year to buy their cover.”