05 February, 2009

It has been revealed that a quarter of small and medium sized businesses in Northern Ireland have a goal to heading towards expansion in 2009 in spite of the severe downturn in the economy.

Amid predicts the monetary meltdown in the SME sector, not one company questioned for the separately carried out Small Business Finance Barometer thought they would have to close down.

Almost half of SMEs quizzed 46% expected that their business would keep on the same size during 2009.

With redundancy declarations on an almost on a regular basis, eight in ten Northern Ireland SMEs indicate they anticipated to sustain the same number of permanent staff. On the other hand less than 10% pointed out they would recruit new permanent employees through 2009.

According to Harry Parkinson, managing director of Close Invoice Finance in Ireland, “Without any doubt these are some of the most challenging monetary circumstances of current period and regularly there are further dark forecasts about the health of small and medium sized businesses.

"Though, as our survey reveals, this sector is extremely resilient and, even as the UK come into a downturn, one in four SMEs in Northern Ireland still anticipate to heading towards expansion this year. That is quite cheering."

The Northern Ireland figure of 25% for those anticipating an aim to grow is somewhat better than the UK average which stands at 20%.

According to Mr. Parkinson, while he highly-praised the government's offers to reignite lending to small businesses, it stayed to be seen how speedily they would offer any assistance.

"We are required to assist SMEs use all the tools at their clearance to secure funding that will facilitate them to weather this present economic downturn."

"SMEs are still undergoing with enormous troubles when it comes to rising overdrafts and loans as banks continue to remain a stiff rein on lending. That's where Invoice Finance comes in," he added.

Mr. Parkinson clarified that "Basically, Invoice Finance works when a company sells its unpaid invoices and in turn they receives instant payment of up to 95% of the worth of those unpaid bills.

"Businesses have the ability to avail cashflow quickly and, if required we pursue the payment of the debt leaving them to acquire with the running of their business."