Small and medium businesses received a boost from the government last week when the launch of the Business Bank finally got under-way. If your small or medium business has been struggling to access the finance you need to grow and deal with cash flow issues, then this project is something that might be able to help.
Vince Cable has been pushing this project for a while now, and last week saw the launch of the first phase. £300 million will be invested alongside private investors to address the gaps that have opened up in the SME finance market. This is the first deployment from the £1 billion of new capital ear marked for the Business Bank, as set forward in the 2012 Autumn Statement. This will build on the successes of the Business Finance Partnership to motivate at least the same amount of private sector investment.
There’s going to be a focus on introducing greater diversity into debt finance, helping SMEs access greater opportunities for funding. It will encourage growth of smaller lenders and new entrants into the SME finacne market, encouraging independent lenders from all sorts of alternative lending areas. New research by the National Institute of Economic and Social Research (NIESR) highlights that SMEs have been disproportionately hit by lack of finance options as a result of banks reducing their lending.
Invoice finance is one such option that is introducing a greater range of choice into the SME finance market. It’s a flexible and accessible way to get hold of added working capital for your business, helping to overcome late payment and cash flow problems. While the business bank gets up and running, there’s still plenty of options out there when it comes to UK alternative finance.