Many small and medium sized local businesses remain optimistic about future prospects for the rest of the year, in spite of a slow start to 2013, a new survey reveals today.

The latest Business Factors report from Bibby Financial Services, which has an office in Bradford, reveals that only 18 per cent of Yorkshire firms questioned saw an increase in new customers in the first quarter of this year, compared with 46 per cent at the end of 2012.

Looking forward, however, 31 per cent of SMEs remained hopeful about future prospects as the proportion of companies taking on new staff has increased significantly from seven per cent in the previous quarter to 22 per cent in the first three months of this year.

The level of new orders has also increased from 20 per cent 12 months ago to 31 per cent in the first quarter of 2013, Mark Storey, Bibby Financial Services regional spokesman, said: “It has not been a very encouraging start to the year for SMEs in Yorkshire but despite the doom and gloom, orders are up on this time last year with almost a third reporting an increase in the past three months compared to just a fifth this time last year.

“However many businesses have also said they want to see the rules around lending criteria loosened as they feel the more traditional sources of finance are still very reluctant to lend. That is why it is so important for business owners to be aware of all funding options because alternative finance is now playing a key role in providing support.

“This year has seen a renewed focus on the role of alternative forms of finance in supporting businesses, particularly when it comes to schemes such as Funding for Lending. This has recently been extended so that invoice finance providers can tap into funding from the Bank of England, to pass on to businesses looking for funding.

“SMEs are the backbone of the economy and in order for the economy as a whole to recover, small-business owners need to build their businesses on firm footing. We would always urge business owners to research all the funding options open to them as a more flexible and specialist form of finance may be able to support the growth they are aiming for.”