SMEs are expecting to see a growth in their business revenue over the next 6 months, according to findings of the inaugural Scottish Pacific SME Growth Index released today.
Based on interviews with 1,257 SMEs in August 2014, with annual turnover of between $1 million and $20 million, the Index found that 62.6 per cent were expecting to see an average revenue growth of 8.6 per cent in the next 6 months.
Of the SMEs predicting growth, 77 per cent said they found it was necessary to use personal assets as collateral in order to see a rise in revenue, an issue that Chief Executive at Scottish Pacific Peter Langham says shows a lack of understanding in non-bank funding options.
“The fact that so many SMEs – particularly in growth mode – are providing collateral from their personal assets, rather than using the assets of the business to support their growth, suggests there is a bigger opportunity for the non-bank specialists with more innovative solutions to increase their presence, but it starts with awareness,” Langham says.
The Index revealed that 4 out of 10 SMEs planned on borrowing from their primary bank, while only 1 in 10 indicated that they would turn to other providers as a source of credit.