SMEs target vehicle investment in 2015
Many companies rely on vehicles in order to do business but that also requires regular expenditure to ensure they run smoothly.
New research from Lex Autolease has revealed that investing in new vehicles is at the forefront of plans among small businesses.
Nearly half of the SMEs questioned as part of a bi-annual Business in Britain survey said they were planning investment of some sort in the first six months of 2015.
Of that figure, 8% revealed plans to purchase vehicles while other common priorities such as investing in employee training, overseas expansion and new equipment were also named.
It would suggest that firms are increasingly becoming aware of the benefits of having vehicles, such as using them to increase brand awareness or to aid the environment.
Companies in the construction and transport sectors saw vehicles as a particular priority, with 28% and 20% of them respectively planning to buy or lease.
Leasing can be more beneficial to businesses than buying outright as costs can be managed more effectively while other firms may wish to have vehicles as assets to the business.
This potential increase in spending comes despite a fall in confidence in the economy by 10%, down from a record high of 43% in the last survey in July 2014.
Decreases in profit expectations and a reduction in orders were found to be the main reasons behind this fall which showcases how quickly economic conditions can change.
In an uncertain financial climate it is essential to ensure that finances are carefully managed so that money is available to deal with any issues should they occur.
A failure to manage adequately or any overspending could place firms in financial difficulty and this can be a very difficult situation to escape from.
In these instances it is important to rectify the situation as quickly as possible which is why business recovery options should be considered.
These can help to protect the immediate interests of a firm and the interests of shareholders should the financial situation worsen.
By Phil Smith