Lending to business via bank facilities has dropped again at the start of 2013, according the latest figures released by the Bank of England. A fall of 4.4% in lending volumes to small-to-medium sized enterprises (SMEs) was recorded in the three months up to February. Loans to construction firms and housebuilders were said to be particularly weak, as banks tighten credit policies. Figures also showed that the major banks were lending less money through the government’s Funding for Lending Scheme (FLS) in the second half of 2012 than in the previous six months. The news comes after it was revealed that more than 50% of SMEs in the last six months have been refused funding by their bank.
Alternative business finance solutions for SMEs are becoming increasingly popular, which are often able to release as much, if not more, equity than traditional bank facilities.
One such facility is invoice finance, which is designed to help release cash that can often get tied up in unpaid invoices.
If you'd like to find out more about how invoice finance can help fund your business, why not browse our website, give us a call on 0845 602 9354 or drop us an email at info@skiptonbf.co.uk.