Business owners urged to check bank agreements

Businesses may benefit from the flexibility of invoice finance facilities and the increased amount of cash it can provide

Business owners have been warned to check the finer details of banking agreements after it emerged a number of businesses were being pushed to take out highly complex interest derivatives.

Following investigations into the recent payment protection insurance row, the Sunday Telegraph reported that many claimants had no idea of costs linked to products used to mitigate the risk of high interest rates pre-2008.

Business owners who believe they may have been mis-sold products were advised to write to their bank asking for redress. If no response was received inside a month, a formal complaint should be made, as banks have to go through a set procedure and timetable to resolve (or not) complaints.

Invoice finance solutions

With bank overdrafts and loans becoming harder to access and more expensive to many, businesses are increasingly seeking other alternative funding solutions, such as invoice finance solutions, to unlock their cashflow.

Invoice finance, which includes invoice factoring and invoice discounting, works to release cash tied up in unpaid invoices.

Why not browse our website to find out just how invoice finance can benefit your business.