Only a fifth of SMEs believe access to working capital will increase in the next year
Nine per cent of small and medium-sized enterprises (SMEs) have seen their insurance premiums rise more than 10% over the past two years, according to a survey by Close Brothers Premium Finance.
In total, one-third of SMEs say their insurance premiums have increased over the past 24 months, compared with just 3% who have seen them fall, the survey said.
Some 11% saw an increase of 6%-10%, and one in 10 saw a rise of between 1% and 5%.
The survey also revealed that only one in five (21%) SMEs believe their access to working capital will increase over the next year.
The premium finance house said these factors could fuel demand for premium finance.
Close Brothers Managing director Janet Wilson said: “Rising insurance premiums and difficulties accessing working capital can put pressure on the cash flow of businesses, and this makes premium finance all the more attractive.
“Premium finance not only has a role to play in ensuring businesses are adequately covered, but can also be critical in helping companies manage their cashflow more efficiently.”