Exclusive new study reveals negative impact Brexit has had on small businesses

Four in five SMEs said leaving the EU has affected their investment decisions

If there's one thing all sides of the Brexit debate can agree on is that the process has caused widespread uncertaintly.

 

 

 

This has been felt by everybody, from the man on the street to the companies operating in our towns and cities.

 

 

 

New research conducted by YouGov on behalf of the Telegraph's Spark and Yorkshire Bank 2019 found 80% of small and medium-sized enterprises (SMEs) said Brexit had had a negative impact on their investment decisions.

 

 

 

Luckily for firms needing advice at this complicated time, Yorkshire Bank is ideally placed to give support in making crucial decision to aid growth.

 

 

 

Below, Yorkshire Bank's Group Business Banking Director Gavin Opperman shares his advice on the key issues...

 

 

 

How can SMEs ensure the business and banking advice they are receiving is relevant to their industry or sector?

 

 

 

Overall, UK SMEs are loyal to their banking providers, with just one in 10 saying that they are looking to move their business banking in 2019.

 

 

 

Receiving a good service from a bank is important and can help boost a company’s prospects, particularly if the bank has specialist knowledge of the sector in which it operates. At Yorkshire Bank, we offer the availability of a named relationship contact that offers understanding and a grasp of business, as well as specific sector knowledge.

 

 

 

Why is having a supportive banking provider important in the UK’s current political environment?

 

 

 

 

 

 

 

 

With significant Brexit uncertainty, having the support of an established bank with a relationship-based service and relevant industry and sector experience, will help management teams to analyse their business plans to identify any levers which can be pulled - to lower costs in particular.

 

 

 

Or, on the upside, any new market openings which could help further diversify their income base and openings.

 

 

 

What should SMEs do if 
they are considering switching banks?

 

 

 

Switching has become easier in recent years and current account changes are relatively straightforward. SMEs tend to switch for better interest rates and fee tariffs, although overall service is key.

 

 

 

In fact, recent research conducted by YouGov on behalf of the Telegraph's Spark and Yorkshire Bank 2019 found 35% of SMEs suggest they would move banks if they could secure a better service

 

 

 

Find a bank that has invested heavily in future proofing and has a track record of staying ahead in managing against security risks. The Business Banking Switch scheme is also there to support and incentivise RBS England customers to make the change to a challenger bank.

 

 

 

How do currency fluctuations pose a risk 
to SMEs?

 

 

 

From our recent survey mentioned above, 80% of SMEs said Brexit had a negative impact on their investment decisions.

 

 

 

However, the currency fluctuations that followed the 2016 referendum are felt by more than a third of SMEs to pose no risk. With that being said, businesses trading to and from the EU may encounter new tariffs and consequently increased exchange risk as borders and supplies may be affected.

 

 

 

The right bank can help businesses to mitigate and plan for this, ‘locking in’ budgeted currency rates in order to smooth the disruption.

 

 

 

What is your advice on debt management?

 

 

 

Over the past decade, market developments have made it easier for SMEs to finance their operations, including the launch of the British Business Bank, which aims to increase the supply of funding to smaller businesses.

 

 

 

SMEs should speak to a credible relationship-based bank. At Yorkshire Bank we are well placed to signpost appropriately through to our network of market and industry contacts.

 

 

 

     
  • Find financial support to help your business grow with a bank that works for you. Yorkshire Bank has services to keep your business finances on track. Visit ybonline.co.uk/business
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