Tandem Invoice Finance is reassuring directors of SMEs that alternative
forms of finance are still available, following the latest industry reports
regarding the challenging state of business funding. Recent forecasts from
The Ernst & Young Item Club suggest that bank lending to businesses is at
its lowest level since 2006, and a survey from the Office for National
Statistics, Warwick Business School and the Federation of Small Businesses
report that averaged loan rejection rates have increased from 11% between
2005 and 2008 to 38% in 2012.
While overdrafts offer access to working capital for the lucky few, Malcolm
Piper, director of Tandem Invoice Finance is keen to assure SME directors
across the UK that alternative finance options are available and the number
of schemes being accessed is continuing to rise. The total number of
businesses using asset-based finance such as Invoice Financing has risen by
4 per cent in 2012, pushing numbers up towards 43,000, according to the
Asset Based Finance Association (ABFA).
Selective Invoice Finance, as offered by Tandem, provides a flexible option
for SMEs by offering finance against individual invoices on an ‘as needed’
basis. By choosing individual invoices rather than a traditional ‘whole of
book approach’, SMEs can better manage their cash flow, do not have to
surrender their entire debtor book, only pay for the facilities that they
use, and avoid the requirement for all of their clients to be ‘credit
managed’ in the same standard way.
Malcolm explains: “Although the recent forecasts and surveys are rather
bleak, there is still a range of funding options available to SMEs today.
Many businesses are adopting invoice finance to access working capital and
our Selective Invoice Finance allows UK-based businesses to release cash
from single invoices, with no long term contract and a single transparent
fixed fee. It is an excellent solution for those businesses needing
flexibility and wishing to stay in control of their own cash flow.”