A survey conducted by Skipton Business Finance (SBF) proved that 93% of respondents said that they had recommended invoice finance to their clients over the past year despite very difficult market conditions.
Sent to the top 250 business leaders in the region, the survey also concluded that 61% of the same respondents felt there will be no sign of economic recovery until 2011 at the earliest or that is was too early tell whether or not the economy was recovering with many commenting on uncertain times ahead for businesses due to the formation of the new government and persisting difficulty in obtaining credit from banks.
Ed Carney, Head of Intermediary Development at SBF said: “Despite what some commentators see as the green shoots of recovery, a good proportion of the corporate elite in the region feel we are still in for a rough ride for the foreseeable future.
“What is encouraging is that such a high percentage of respondents now realise that invoice finance is a credible alternative to traditional, and sometimes restrictive, bank funding.”
Now that the election is over and the new coalition Government is in power it is fair to say that businesses are still no clearer about the short or long-term future under the new administration and with credit from banks being more and more difficult to obtain, it’s fair to say that it can be an uncertain time for business.
However, business must still go on and many company’s are not only striving to keep their cash flow fluid but are also determined to grow and create new jobs, with many being recommended invoice finance as a solution to close their cash flow gap.
“The reason as to why such a high number of respondents have recommended invoice finance to their clients is that more and more people are realising that this form of funding is very flexible and can be a successful alternative to overdraft facilities,” Carney continued.
“In today’s fragile economy businesses that are still looking to expand and grow need the certainty of robust cash flow to fund their aspirations. Invoice finance provides this assurance and allows the management to work on their business.”