Monday, October 24, 2011 1:19:00 PM
Increased use of accounts receivable (AR) finance by UK SMEs could provide the additional working capital to create more than 300,000 new jobs by 2020 according to a new report commissioned by GE Capital.
The report examines the current and future economic impact of AR finance across the UK, France, Germany, and Italy, and the CEO of GE Capital said "AR finance plays a key role in enabling UK SME's to take advantage of growth opportunities, improve casfflow, and enhance business flexibility. For the first time this research has been able to quantify those benefits to the UK economy and it's clear that, at a time when the UK is desperately searching for growth, greater awareness and uptake of AR finance is one way that such growth could be found. What this report clearly shows is that the availability of this form of finance is absolutely key for the UK economy to grow and recover."
According to the reort's findings more than 250,000 jobs in the UK are currently reliant on the availability of AR finance, and without this source of finance the UK ecenomy would immediately contract by £4.9bn per quaret in Q4 2011.