The latest Close Brothers Business Barometer is out and it reveals that more than half of SMEs (56%) report feeling no impact on their volume of business following Brexit.
Confirming that sentiment is the news that more than three quarters (76%) of businesses have not delayed spending or investment decisions because of the EU Referendum. Indeed, just 18% of business owners believe the referendum result will lead to fewer opportunities. Tellingly; however, 49% feel they anticipate no change and that it is likely to be ‘business as usual. The remaining 33% are looking forward to better prospects in the future.
“It’s clear that the majority of UK SMEs are yet to feel any real and tangible effect from Brexit,” said Neil Davies, CEO, Close Brothers Asset Finance. “It’s interesting to note that of those who have been impacted, it’s pretty much split down the middle in terms of those who have been positively and detrimentally affected. There is also a real regional difference, with businesses in London feeling the most exposed.
‘SMEs least likely to be affected’
It’s interesting to note that 88% of smaller firms – those with a turnover of between £250k to £500k – were the least liable to allow the EU referendum stop them from pushing their business forward,” Davies says.
“Close Brothers has a history of lending through all economic cycles, and experience tells us that these organisations aren’t sitting on large reserves of cash. In order to maintain business levels, they typically don’t have a choice but to spend and invest to ensure a sustainable flow of cash.