According to a new report for the Department of Business, Innovation and Skills, more than a third of the UK’s small and medium businesses are in need of external capital to help grow their businesses. With the banks often being unwilling, or unable, to lend to any business they perceive as ‘risky’, this has meant that funding is hard to come by for many businesses. Despite government projects to make more finance available, alternative funding sources such as invoice finance are becoming more and more important to the UK business landscape.
Initiatives such as Project Merlin and Funding for Lending haven’t enriched the UK business lending environment as first expected, and the Government’s Business Bank is yet to start at full strength. As such, it’s more important than ever that businesses look outside of the banks for funding in order to make the most of the growth opportunities available to them. Government initiatives could well start to make some headway in making more funds available to small businesses, but in the mean time it’s up to those businesses to do a bit of leg work themselves and start to research more alternative finance opportunities.
Invoice finance is one such option if your business is in need of quick, accessible funding that can grow as your company grows. It’s essential to have access to funds if you want to grow your business, and factoring and invoice discounting can unlock the cash tied up in unpaid invoices often within 24 hours. This means that not only will you have access to your funds in a reliable time frame, but your business will benefit from increased confidence and boosted cash flow. If you think your business could benefit from increased flexibility and cash flow, then factoring could be a great next step.