Mid-Sized Firms Need (Financial) Support

29th March 2018.

BDO tax partner, Jo Gibley calls on the Government to prioritise support for mid-sized businesses, as Brexit and other conditions threaten their position within the economy.

Described by Ms Gibley as the “economic engine of UK growth”, these mid-sized businesses need support, whether it’s from the government or from financial services. These firms are not as vulnerable as small businesses, nor as confident as larger firms, instead, they in the middle, with an openness to change but with limited funds to achieve it. According to a report conducted by BDO, while almost a third of mid-sized firms have paused investment, 69 percent are confident in their growth ambitions. They do not lack the courage to chase growth, but merely the financial opportunity.

Ms Gibley goes on to demand government involvement, asking for more growth-nurturing policies and a swift deal with Brussels. While these elements will no doubt help mid-sized businesses, and many others throughout the economy, business owners can also help themselves. By approaching the Credit Protection Association our members gain more than the ability to fund their own growth, but a revitalised cash flow. While our debt recovery services recover owed funds, our credit management products ensure no outside forces can damage it.

With the skills gap damaging any-sized business, Ms Gibley calls for government involvement in the matter, believing this will also boost the country’s flagging productivity.

She further suggests reinstating the two-year post-study work visa for foreign students who study STEM subjects, which she sees as helping the growth of manufacturing and tech companies.

“Ensuring our country is a simple place to do business could be a huge competitive advantage for the UK. The current tax system provides complex and unnecessary obstacles for companies in pursuit of growth”

With the cost of money still relatively cheap, Ms Gibley sees it as the right time for investment. According to the BDO report, well over a third of the UK’s medium-sized companies have demanded more investment in smart infrastructure.

“Tolerating uncertainty over the future of our global position is something – for the time being – we will need to get used to”, Gibley adds.

Government involvement is necessary for the economy to grow, as is the involvement of credit managers or investors if banks are continually distrusted; it needs to be a joint venture, a collaborative effort. As the Brexit deadline approaches, businesses are getting more concerned about what the future will look like.While the government has attempted to provide clarification, this has offered little relief. Businesses need to prepare for the worst while hoping for the best, and this is dismissive of size.

At the Credit Protection Association, we provide our members with opportunity; whether it’s towards expansion, or straight into savings. Ultimately all businesses are struggling at present, whether it’s the supply chain damage left behind by Carillion, the ‘retail apocalypse’ on the high street, or the Brexit uncertainty felt by all. Our debt recovery and credit management services provide our members with the financial freedom to not only explore new options but to desist concern for others. The future will not look so bleak as long as you are prepared.