SMEs optimistic despite economic concerns Some 45% of SMEs including motorsport businesses expect cashflow to improve over the next three months, with 55% expecting improvement over the course of a year, according to Opinium data collected for Paragon Bank. Over a third of SMEs will use the increased cashflow to invest in their business, with just 10% expecting to reduce spending. A third of businesses were also planning to recruit additional staff over the next six months. Confidence in the broader economy was less strong, with only 31% of businesses taking a positive view on the UK economy. Proposed changes to banking regulations, which would make it more difficult to lend to the sector, could reduce lending to SMEs by as much as a third. However, John Phillipou, managing director of Paragon's SME lending division, said that SMEs are ready to drive economic recovery throughout the UK.