SME's prefer self sufficiency

A recent study reveals that small firms are shunning external finance in favour of self-sufficiency, classing themselves as "permanent non-borrowers". Business owners are increasingly focused on paying down debt, improving their financial health and then growing more slowly under their own steam. Harris & Co chartered accountants Northampton say that the results on this national survey are reflected in the trends that they see in Northamptonshire"s small businesses. The study found that 43% of small and medium-sized companies in 2014 said that they had no interest in using external finance - up from 33% in 2012. The proportion of small businesses using one or more sources of external finance has fallen from 44% in 2012 to 37% last year, while 78% turned a profit last year, compared with 69% in 2012.