Factoring and SMEs

Mixed results from global SME survey

Results from the MasterCard Global Small Business survey indicate mixed emotions about SMEs prospects for 2007. The survey, conducted in October 2006, polled 4,000 small business owners or managers around the world who run businesses with 1-99 employees about their financial confidence, business outlook, attitudes towards globalisation and use of technology.

Pressure on inflation to carry over into 2007

The outlook for business in the approaching March quarter remains bleak, with inflationary pressure and suppressed sales and profits outlooks persisting despite recent falls in fuel prices according to the latest Dun & Bradstreet Business Expectations Survey.

The results for November indicate that over half of executives are expecting to have to raise prices in the first quarter of 2007 in anticipation of reduced profits.

The expectations of pre-Christmas spending have improved slightly, however only 8% of executives are expecting a positive affect of the Christmas trading period on their business.

According to Dun & Bradstreet CEO Christine Christiansen, businesses are in for an uncertain first quarter. "Retailers and wholesalers will feel increased pressure throughout the festive season, with profits and sales expectations low" she said.

Australian SMEs well positioned for world stage

Australia is well positioned to become the world's leading global SME nation believes Dr Ian Lin, Managing Director of the Quo Vadis Consulting Group.

According to Lin, our geographical isolation and relatively small population should be considered advantages as they force Australian SMEs to become more internationally competitive in the face of lowering tariffs and the threat of cheap imports. As a result, Australian SMEs are good at innovative design, flexible manufacturing and high quality products.

According to Lin, SMEs lack the resources of time, finance, management capacity and information to adopt big business export strategies.

Bibby's Export Factoring product offers a solution to the finance problem, by providing SMEs the cash flow to deal in overseas markets and cope with long lead times and export-related costs, while minimising the risks associated in international trade.

Business confidence up before Christmas

Results from the Sensis quarterly business confidence index for small and medium sized enterprises indicated that strong consumer demand and suppressed petrol prices has led to increased confidence ahead of Christmas.

The index rose 5% to 50%, a result which shows businesses are increasingly becoming more confident according to report author Christina Singh.

"This is really the turning point in terms of business confidence and we're seeing a quite a consistent and solid turnaround here," she said.

"Businesses are really quite confident about where they're going, particularly through the important Christmas retail period".