Industria
Over half of UK's SMEs reliant on credit cards to support their businesses day-to-day finds GRENKE UK Lease of Life report
Across the eight sectors examined, the Lease of Life report found that SMEs in the retail sector are the most likely to rely on credit cards with nearly 60 per cent sticking their costs on plastic, despite the limited nature of this form of financing as well as the increased risk of exposure to higher interest rates. At a regional level, Scotland sees the highest use of credit cards with nearly two thirds (60 per cent) of Scottish SMEs using this as their primary form of financing.
Looking more closely at alternative forms of finance available to SMEs, whilst two-thirds (66 per cent) of respondents have considered using asset finance, one in 10 (10 per cent) feel they don't have access to sufficient knowledge or information to choose this option.
The report also found there is a significant opportunity for asset finance to play a bigger role in SME growth opportunities. Increased use of asset finance amongst eligible UK SMEs across eight major industries, has the potential to contribute £7.6bn annually to national GDP and up to 114,800 jobs by 2025.
At an industry-wide level, nearly a third of manufacturing SMEs are currently using asset finance, contributing £216m to the UK's GVA, the highest contribution of any single sector. GVA or Gross Value Added is an economic productivity metric that can be used to measure the contribution to GDP (Gross Domestic Product) made by an individual producer, industry or sector. It measures their contribution to an economy, sector or region. A third of manufacturing SMEs also say they expect their use of asset finance to grow over the next few years.
Our research found that Yorkshire and the Humber is the most successful region in the UK using asset finance to support employment, with a quarter (25 per cent) of all UK SME jobs attributed to this type of finance found in the region. Nearly half (46 per cent) say they are considering expanding their use of asset finance over the next few years as it has successfully contributed to their business productivity and profitability. SMEs from Yorkshire and Humber the region also report this type of finance provides a higher contribution to business productivity and profitability compared to the national average.
To access the full report, please follow this link.
GRENKE UK provides leasing and factoring solutions for businesses, supporting their growth. With an extensive regional network across the UK, the teams are entrenched in local business communities.
GRENKE UK is part of The GRENKE Group (GRENKE), a global financing partner for small and medium-sized companies. As a one-stop shop for customers, GRENKE's products range from flexible small-ticket leasing and demand-driven bank products to convenient factoring. Fast and easy processing and personal contact with customers are at the centre of GRENKE's activities. Founded in 1978 in Baden-Baden, the Group operates in more than 30 countries and employs approximately 2,000 staff (measured in terms of full-time equivalents) worldwide. GRENKE shares are listed in the SDAX on the Frankfurt Stock Exchange (ISIN DE000A161N30).
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