As the UK funding environment remains a harsh place for the country’s SMEs, the government is pushing for more companies to make use of the alternative finance options available to them. UK start ups are particularly being targeted by government efforts – access to finance is often cited as the biggest obstacle for people looking to get their new business started.
Start-ups are being targeted with new reforms that make it easier for businesses to get up and running and expand, grow and achieve better cash flow. This will hopefully stimulate the economy from the bottom up, helping the wider UK to benefit from increased lending to small and start up businesses.
Vince Cable, Business Secretary, is keen to get his Business Bank off the ground, but in the mean time a new guide to alternative finance has been launched, published by the Confederation of British Industry (CBI). With so many alternative options available for businesses, this guide will go some way to raising awareness. Cable commented: “Britain’s businesses cannot grow, export and innovate without proper access to bank credit. But they also need alternatives when looking for finance. The government wants to see a shift in market structure towards non-bank lending.”
Non-bank lending options include invoice finance with options such as factoring often presenting good opportunities for small businesses to improve their cash flow management. The need for steady cash flow and reliable working capital solutions is common for small businesses, and these are areas that invoice factoring can really deliver on. The government is pushing for more businesses to explore their alternative options – and factoring presents some great opportunities.