SMEs are struggling to sift through a myriad of confusing business finance options, a report by the National Audit Office (NAO) has found. Securing an external finance facility remains a priority for many small firms, even with the improving economic picture, as output prices, costs and wages increase and businesses look to fund expansion plans and take advantage of economic growth. But the NAO report suggested a ‘funding’ gap between the amount of finance available to SMEs and the amount they actually required existed, of approximately £10bn to £11bn. This is forecast to rise to £22bn by 2017. One reason many SMEs have struggled to access the right finance solution for them is due to a lack of evidence of a track record predicting future performance. This is especially a problem for SMEs that are less than five years old, as their credit history often isn’t extensive enough for them to secure finance through traditional routes. SMEs that could access external finance are also being put off as they feel it is unlikely they would be able to secure funding.
Invoice Finance – An Accessible Funding Solution
Skipton Business Finance provides UK SMEs with invoice finance facilities, including invoice factoring and invoice discounting, as well as the government-backed Enterprise Finance Guarantee (EFG) scheme. We fund hundreds of UK businesses with finance facilities that grow in line with their own business growth, as the funding line available to them increases as more and more invoices are issued. Our facilities are also accessible to SMEs without a standard three or five year credit history, as our team look more at the product/service and current financial state of the business when making a decision on whether to fund a business.Why not browse our website for more information on invoice finance. Alternatively fill in the enquiry form on the right and one of our team of experts will give you a call back to discuss how we could help your business.