One of the true bright spots for the UK economy is the resurgence of the British auto economy, which now looks set to add 50,000 jobs over the next two years. These developments will benefit the large auto companies and the numerous suppliers who make up the auto industry supply chain around the country. So with 50,000 new jobs on the horizon and major developments in the automotive sector on tap, is the economy ready to take advantage of this opportunity?
Tim Armstrong of KPMG discusses how the current state of working capital finance could present a stumbling block to the continued development of the automotive industry and the UK economy as whole. With approximately four-out-of-five UK companies using banks for finance a more than nine-out-of-ten SME’s dependent upon bank loans, the obvious question is whether or not there will be enough loans available for these companies to meet demand and grow at a healthy, prosperous rate.
In this interview Tim talks about the current state of bank lending, where alternative funding solutions are today and the challenges they face, and a new model that can benefit all parties while stabilizing the working capital environment of SME’s and helping the British economy continue its recovery.