Optimistic SMEs bank on growing their businesses
![Adam Morghem, Strategy, Marketing & Communications Director, Premium Credit Adam-Morghem,-Strategy,-Marketing-&-Communications-Director,-Premium-Credit](https://youtalk-insurance.com/sites/default/files/styles/news_item_twitter/public/adam_morghem_strategy_marketing_communications_director_premium_credit_4.jpg?itok=Or4T6474)
- Nearly five times more SMEs expect their business to grow than shrink in the year ahead
- Launching new products and expanding into new markets is driving confidence
New research from the UK’s leading insurance premium finance company, Premium Credit, shows nearly five times more SMEs expect to see growth in revenues compared to those who expect revenues to shrink.
Research from Premium Credit’s Insurance Index, which monitors insurance buying and how it is financed, found nearly half (49%) of SMEs are predicting an increase in revenue in the next 12 months as business optimism builds. Around one in seven (14%) are forecasting revenue growth of 25% or more.
Just 10% of companies questioned are predicting revenues will shrink in the year ahead with 17% saying they will stay the same. Around a quarter (24%) were unable to forecast what will happen to revenues.
The biggest drivers of SME optimism identified by the research were plans to launch new products and expand into new markets. Around 35% expect revenues to increase following new product launches while 34% expect to boost revenues by expanding into new markets.
However nearly one in three (30%) say revenues will be boosted by successful cost-cutting and 29% are banking on the cost-of-living crisis to ease as the economy improves.
Among firms expecting a revenue squeeze the biggest case of pessimism is their belief the cost-of-living crisis will not improve. Around 62% of those worried about the future expect the economy to continue to suffer while 42% say their client base has shrunk as firms have gone bust.
Adam Morghem, Strategy Marketing and Communications Director at Premium Credit, said: “SMEs have been through a tough period in the last three years with the COVID-19 pandemic being rapidly followed by rising inflation and interest rates.”
“SMEs have been innovative and adaptable throughout the period as they react to pressures on cashflow. Premium finance is a very cost-effective way for businesses to buy insurance, and better manage their finances and cashflow by spreading payments.”
Premium finance companies like Premium Credit provide businesses and consumers with the ability to use a loan to pay for their insurance in monthly instalments. By managing insurance payments in this way, businesses and consumers can spread the cost of their insurance, rather than pay their premiums in one lump sum.
Authored by Premium Credit
About Premium Credit
We are the leading provider of premium finance in the UK and Ireland, and the only company endorsed by BIBA.
We are authorised and regulated by the Financial Conduct Authority, and work with over 3,000 producers of all sizes. We serve over 2.1 million customers, process 24 million direct debits and receive advances of £3.5 billion.
For over 30 years, we’ve led the market through thought leadership, innovation and technology and have helped our partners offer finance compliantly to their customers through face-to-face, telephony and online channels.
We continue to invest to ensure we provide a quality service and support that helps you grow your business and commission. From the delivery of a seamless customer journey, which includes real time decisioning for financing and 24/7 account servicing, to consultation that improves the offer of finance to customers, we are committed to growing the premium finance market.
Our Specialist Lending division also provides finance to pay other annual costs, such as professional fees, membership subscriptions, commercial service charges, golf clubs and school fees.