The CBI has today launched a guide to the sources of alternative finance in order to help small and medium businesses get hold of the funding they need to grow. This is an important tool for businesses to use in order to benefit from a wider range of finance options, especially when looking to boost cash flow and look outside the banks for help.
Speaking at the launch event, business secretary Vince Cable commented: “Britain’s businesses cannot grow, export and innovate witohut proper access to bank credit. But they also need alternatives when looking for finance. The government wants to see a shift in the market structure towards non-bank lending, and through the business bank is deploying £300 million of the £1 billion allocated to the initiative to invest alongside the private sector in new entrants and the growth of small lenders.”
The Asset Based Finance Association (ABFA) is also on board with this new guide to help small businesses get access to the finance that they need. Kate Sharp, CEO of the ABFA commented on this new guide; “Businesses need help understanding the finance options that are out there and this report is a welcome step forward to that. The government and bodies like that CBI are doing a great deal to support ‘non-traditional’ forms of commercial finance and we welcome their efforts. The asset based finance industry has an important role to play in supporting even more businesses going forward and we look forward to delivering on that potential.”
Alternative finance is an important tool for businesses to use, especially in the current economic climate and with the lack of bank lending. This guide is a step in the right direction for raising awareness about the different forms of finance, such as asset based lending and invoice factoring, that are available for small businesses to use.