According to a report by the European Commission, the UK economy is set to grow in 2015 by 2.4 per cent and businesses of all sizes will be celebrating as they take advantage of this positive news.
The figures released by the European Commission are supported by the growth forecast issued by the British Chambers of Commerce (BCC), which was slightly higher at 2.5 per cent. The BCC added that although growth had slowed during the quarter ending in August, the outlook for the last quarter and for next year is strong. Some experts predict that an expansion in construction, energy and manufacturing will help the economy to accelerate.
The co-head of UK operations at Barclays, Tony Walsh, commented:
“The average person has more money in his pocket and that is benefiting businesses of all sizes. Construction is booming, manufacturing is growing very swiftly and the leisure industry is now picking up.”
The Guardian provided a reason for the strong forecasts provided by economists:
“Biotechnology, nanotechnology, 3D printing and the next stage of the computer revolution, as well as a rise in the economically active population.”
A number of experts also believe that UK companies can expand with their existing workforce, rather than having to recruit.
As experts predict growth for 2015, more funding is available for businesses in the UK, including some alternative sources. As credit availability increases and the cost of borrowing has dropped, this is a good time for SMEs to make big decisions for the coming 12 months. Here are some noteworthy finance options for entrepreneurs to consider:
Traditional business loan
An amount of cash is borrowed over an agreed period of time and is paid back in instalments with interest. This is suitable for fuelling a company’s long-term plans.
The Enterprise Finance Guarantee
This scheme provides loans from £1,000 to £1 million to companies that have a turnover below £25 million. This type of funding is suitable for those enterprises that are unable to secure a loan as they have insufficient security, although they have a sound business project or idea.
Business Growth Fund
This is funded by five main banking groups in the UK and has £2.5 billion to invest in the growth of UK SMEs.
Let us know about your intentions for 2015. Do you intend to expand or make significant changes? Get in touch today.