Small and medium-sized enterprises (SMEs) in the UK are losing a total of £5.4 billion each year because they are unwilling to invest in new equipment.
That is according to a study by asset finance provider Lombard, which showed around 65 per cent of firms said they are operating with outdated equipment.
This means that the UK is now lagging behind more forward-thinking SMEs in countries such as Germany, Italy, Switzerland, Turkey and Mexico, the Telegraph reports.
Ian Isaac, the interim managing director of Lombard said: “Our international competitors are ahead of the curve in both their investment in manufacturing as well as their greater use of asset finance.”
One of the reasons for the lack of investment is due to poor awareness of asset finance, which allows a company to purchase new machinery without having to fork out a huge sum upfront.
Therefore, more needs to be done to promote an awareness among SMEs about the types of funding options available to the – if this doesn’t happen, Britain’s SMEs will continue to be left behind.
Posted by the Secret Businessman