The survey was based on the views of 136 finance chiefs. Of these 136, 39 came from FTSE 100 companies and 53 came from FTSE 250 companies.
According to the figures, those people who are still fearful of a double dip recession have dropped to 30 per cent from 54 per cent. This is amidst figures released that show that Britain’s economy shrank by 0.1 per cent in the first quarter of this year.
Ian Stewart, Deloitte’s chief economist, commented on the news, “The worries about the risk of recession and a break-up of the single currency that dominated corporate thinking at the end of last year have eased. Finance directors are also reporting an increase in credit availability...This more than unwinds the deterioration in credit availability seen in December which, at the time, some feared could be the start of a second credit crunch.”
Although the outlook looks brighter, Deloitte noted that UK companies are still reluctant to spend money and many are also frightened of asking for loans from banks, due to negative feedback and poor credit scores.
Mr. Stewart said this showed “a symptom of caution” but many believe that the lack of funding will not enable UK businesses to expand, succeed and develop.
With the more difficult markets for recovery expected to be property, construction, leisure, and business services, many companies are looking for alternative ways to raise finance.
Some SMEs are looking at alternative options such as a merchant cash advance – an alternative lending solution which has high approval rates and flexible repayment methods.
With repayments based on taking a small portion of each customer’s payment as they pay for their goods on credit/debit card, the advance can be easier to repay and can even be extended provided certain conditions are met.
Businesses can get anywhere up to £150,000 with a merchant cash advance, useful for funding vital business goals. The application process tends to be easier than for traditional bank loans and any business that processes more than £3,500 a month in credit or debit card sales can apply, no matter what industry they operate in.