Once upon a time there was a major credit crunch, which led to many banks stopping lending to local businesses…
Throughout 2014, Skipton Business Finance has continued to support local business through our Invoice Factoring and Invoice Discounting solutions, increasing both our client numbers and amount of cash advanced.
We remain keen to assist both existing and new businesses, particularly those who have survived the downturn and will require cashflow to take advantage of opportunities now presenting themselves as the economy gathers strength.
- It’s all about backing the management of businesses who have a good story.
- If the business needs to restructure, does the story seem realistic?
- What has gone wrong and what are management doing about it?
- If it’s going through an insolvency process, then what is going to be different this time?
There are a lot of businesses out there who are stagnating with their existing funder. The relationship may have become fatigued, with neither side wanting to rock the boat.
Unfortunately there may be some event around the corner which will end this inertia abruptly.
This could be a bad debt, the loss of a major customer or simply an increase in interest rates or fee structure imposed by their current funder due to their poor trading. Further problems could be around the corner once audited accounts are filed, with suppliers withdrawing or restricting credit limits due to a weakened financial position.
By the time this happens, it's too late. The lender has no confidence in the management and visa versa and any chance of much-needed assistance has long gone.
But it’s not all darkness before it goes pitch black. There is a light at the end of the tunnel!
Our attitude to funding
We offer a strong and fresh alternative to a company's existing relationship. If we like the story and can provide the necessary injection of cash and passion we can really help change a company’s fortunes.
We are more interested in where a business is going rather than where is has been. Many lenders are focused on audited accounts which are out of date and may show poor or deteriorating trading results over the last few years.
We want to know the story of what they are going to do going forward. If it is a reasonable story and we can help save jobs and create a successful business for the future then… they all lived happily ever after…