80 per cent of financial advisers have revealed their clients’ overdrafts were refused or withdrawn during the past six months, a survey shows.
The findings, based on a survey by Strand Financial of financial intermediaries in June-July 2009, also show that 57 per cent of advisers are more likely to recommend invoice discounting and that 55 per cent are more likely to offer factoring. Some 47 per cent of respondents were less likely to recommend bank overdraft facilities since the downturn.
The survey shows how the business community has been hit from all sides. Around 84 per cent of respondents stated that the scale of late payment for clients had worsened in the past six months, 56 per cent said that most clients had experienced reduced profitability, 45 per cent reduced turnover, 40 per cent reduced investment and 30 per cent had seen reduced staff numbers.
Of the businesses experiencing difficulties, 58% of them attributed this to cash flow problems either their suppliers need paying quicker or their customers are wanting longer payment terms and in a lot of cases Companies are being squeezed at both ends.
As traditional lending, such as as overdrafts are drying, Enable Finance has been spearheading an initiative to talk to as many businesses as about alternative sources of funding specifically those within Asset Based Lending such as Invoice Factoring.
What To Do Next if Your Overdraft is Reduced or Pulled
- Ask the bank the specific reason why they have reduced your facility.
- Contact Phillip Evans direct on 0797 0500425 or [email protected]
- Have a Free meeting with Phillip Evans and see what your options are.