Cautious lending criteria from the conventional banks and lenders are impacting severely on UK businesses at a time when many firms are looking for increased funding to help them ride out the recession.
Finance is often required to make the strategic and operational changes that will allow a business to maintain profitability in the face of toughening market conditions, yet these same conditions also affect a firm’s customers and trade suppliers with the potential to cause disruptions to cash flow and working capital through the business.
Invoice Factoring and Sale & Leaseback finance could offer the UK business owner a fast and flexible solution to their impending cash flow disruptions.
Factoring and Leaseback fall under the umbrella of Asset based lending (ABL) being a form of financing that allows a business to borrow capital against its property, plant, machinery, stock and debtors.
Figures from the ABL trade body, Asset Based Finance Association (ABFA) show that during the first half of the year, the industry advanced over £17.3 billion against invoices, stock, property and other trading assets worth a total of £31.2 billion, a growth of 15 per cent. This significant growth exceeded that of traditional funding to private non-financial organisations which grew by just 13.2 per cent over the same period.
At a time when conventional lending is contracting Invoice Factoring and Sale & Leaseback Finance is clearly growing. Is it time that you spoke with the Business Finance Team @ Enable Finance Ltd.