Two full days in Birmingham this week talking to both business financiers and professional support practices. The financiers are busy, so they say, but the major challenge appears to be getting prospective clients, borrowers, to actually draw funds.
Dealing with a couple of prospects at the moment considering single invoice finance, also known as spot factoring. This type of facility offers real benefit to a business given its flexibility and the ability a borrower has in using the facility on an as and when basis. The costs are high though and must be calculated and considered prior to entering any agreement.
There’s talk of new invoice financiers entering the UK market; competition is welcome and businesses get greater choice. Whether the market is sufficient to accommodate newcomers is another issue. Whether new entrants are forthcoming or not there is still greater choice for businesses in terms of funding alternatives. Consequently its vital any business takes advice.
No advice is better than bad advice or biased advice so its important businesses talk to independent, experienced advisers. The invoice finance market is full of well meaning brokers but all too often their opinion and advice is compromised either by a lack of independence or lack of experience – or both.
on Television this morning (16th Jan) talking about small business and funding. He championed invoice finance without actually using the word Factoring! He is immensely proactive in his support of SME’s and their contribution to the UK economy and has an interesting take on the banks and their support and/or lack of it.