A survey of small companies and investors by commercial law firm Mishcon de Reya has revealed that a quarter of entrepreneurs have reported that their banks have sought to make changes to loan terms.
More than one in five also reported their lender wanted to reduce the loan’s maturity, whilst 41% of respondents claimed additional fees were being added.
Businesses are being put under “increasing and unacceptable pressure by their banks”, according to Masoud Zabeti, head of finance and banking at Mishcon de Reya.
“When we challenge them, they often have to accept they’re not entitled to do this. Sometimes they attempt to say the client is in breach of the terms, with reasons that are suspect to say the least,” he concluded.
Invoice finance as alternative funding solution
Invoice finance is an external funding solution increasingly growing in popularity amongst small companies and SMEs, with solutions such as invoice factoring and invoice discounting proving especially effective.
Here at Skipton Business Finance, we pride ourselves on the flexibility of our products and the way we can build highly specific solutions to meet the needs of individual clients.