New research has revealed just how big a role alternative funding sources play in keeping the UK’s economy going, and how much further it could go in helping the economy to achieve growth.
Increased use of accounts receivable finance (which includes factoring and invoice discounting services) by the UK’s SMEs could provide enough funding to create approximately 311,000 new jobs by the year 2020, according to the new report commissioned by financial services provider GE Capital.
Detailed econometric modelling and interviews with key stakeholders in the UK and across Europe were used to formulate the findings.
The report also stated that the increased cashflow benefits that come with this form of alternative funding could boost the economy and improve GDP by 2.09%, equal to almost £7 billion a quarter, by the last quarter of 2020.
Although awareness of alternative funding options can improve drastically, there are still many businesses that have used such services and rely on the cashflow and flexibility they provide to help grow. The report found that if accounts receivable funding was suddenly removed from the economy, almost 250,000 jobs would be immediately under threat and the UK’s economy would shrink by close to £5 billion in Q4 of 2011.
Alternative funding from SBF
If your company is looking to take the next step up and reach its potential, but may be struggling due to the volatile economic conditions, could alternative funding, such as invoice factoring or invoice discounting services, help you find that all important growth?
We have affordable and easily accessible funding options which are flexible to your requirements and can help aid cashflow and boost growth.
Why not contact us today to see if our alternative funding methods can help your business grow.