Invoice finance firm Optimum Finance has reported a summer boom for SMEs in the South West compared to growth in previous years and since the Brexit decision two years ago.
In July and August 2018, revenues generated by small businesses increased significantly during a usually quiet seasonal period according to figures released by Optimum Finance.
Whether it’s the effect of the hottest summer on record or confidence returning to SMEs two years after the shock Brexit result, the summer of 2018 has proved to be far more positive than forecasted for small businesses.
Optimum Finance analysed the monthly income generated this year by 100 SMEs representing a range of sectors, from manufacturing and recruitment to consumer goods and professional services.
The invoice financier found that, far from the usual predicted 20% downturn in income usually experienced in July and August, 10% more income was generated in these months when compared with previous months and compared with the same months in previous years. This represents a 30% swing in growth resulting in the biggest turnover going through the books during the last two months for two years.
Commenting on this positive pattern, CEO of Optimum Finance Richard Pepler said: “I’ve worked in this industry for over 30 years, tracking SME output trends, and I have never seen such a positive revenue increase as this year has produced.
“The growth of invoices we managed was noticeably higher than expected during what is usually a much quieter period and this change in the business confidence could be a sign that small business confidence is more robust that some industry commentators have predicted.”
Reasons for this growth could indicate that the UK economy is bouncing back from the Brexit effect which saw an immediate decline in the economy after the dividing result in June 2016.
Optimum Finance helps businesses release cash tied up in outstanding invoices, enabling them to flourish in prosperous months and prepare for quiet periods.