The Small Business Finance Directory was launched last week, giving SMEs a new source of alternative funding alternatives. When businesses are declined for bank loans and overdraft extensions, it can be hard to keep their cash flow healthy. This Directory covers a range of different funding solutions that businesses might not have considered before, including factoring and invoice discounting.
UK Wide Directory
Developed by leading financial bodies such as the Finance and Leasing Association (FLA), the Directory aims to help over 60 000 businesses in the first year. It’s the first comprehensive directory of its type to cover the whole of the UK. Wherever you’re based, you can find the best suited solutions for your business.
Research has shown that many small businesses are aware that alternative funding solutions exist, but are unsure where to find them. Hopefully, the Directory will help to dispel some of the mystery surrounding alternative funding, meaning more businesses will be able to get finance outside conventional channels.
Finance solutions included in the directory include leasing and hire purchase, commercial mortgages and asset-based finance. Factoring and invoice discounting are also shown as a good solution for many businesses’ funding problems.
Factoring can help to improve your business’ cash flow by releasing funds tied up in unpaid invoices. This can quickly improve your cash flow with minimum paper work, saving you the hassle of chasing debts. This is one solution we offer at Select Factoring. We can either take care of all your invoices, or selective factoring can be used to collect specific debts.
Invoice discounting is another solution offered by Select Factoring. When you send out invoices to customers, you share the details with the Invoice Discounter, who can then release funds. The difference to factoring is that you will continue to chase customers to pay the full amount, but will get paid a large proportion of the money before they have cleared their full balance.
If your business is struggling with chasing invoices and debts, then factoring and invoice discounting could offer a solution. More information on the Small Business Finance Directory can be found at www.smallbusinessfinancedirectory.co.uk.