A survey by the Federation of Small Businesses (FSB) has revealed that few small businesses are accessing bank credit facilities in the last two years, despite initiatives aimed to increase bank lending.
The survey of over 11,000 members of the FSB indicated that approximately one in three used an overdraft in the past year, whilst only one in 10 have access to a bank loan.
New businesses, those under two years old, were highlighted as particularly having issues gaining access to funding, the report stated.
Chairman of the FSB, John Walker, said of the figures, “Money is going to bigger businesses (despite lending figures above target) and not new and fledgling firms that need it to take advantage of growth opportunities that are there even in these challenging times.”
Walker continued, “What we need to see is better promotion of the alternatives available and for the Government to put in place their bold credit easing plans, which will help small businesses access finance on better terms.”
Alternatives to bank credit
One such financial alternative is invoice finance, designed to release cash tied up in unpaid invoices. Such facilities are even accessible to the very youngest of businesses!
Invoice factoring and flexible invoice discounting facilities both have the power to unlock the money you are owed by debtors and ease your cashflow worries.
Why not give us a call today to find out more about how invoice finance could hand your business back the power of cashflow.