The week completed, 27th February 2015

With bankers never out of the news these days it was interesting this week to meet up with a couple of ‘alternative’ funders although its not really clear why the word alternative is used.

Some time ago when a business secured an order from a decent customer but needed funds to fulfill the transaction a bank used to make available overdrafts. A Bank manager would use his or her experience in evaluating the customer and the proposed transaction before making a rational decision. The banks seem to have lost the ability to make rational, quick decisions leaving something of a gap, being filled by ‘alternative’ funders.

Whilst the names may not be familiar the type of facilities being offered are and sensibly priced money is readily available to businesses with a cogent proposition.

Meanwhile the banks with which we are all familiar continue to occupy front page space for assorted reasons few of which have anything to do with traditional banking.

The new business world within invoice finance is full of businesses contemplating a move from one funder to another. There can be real merit in switching and more and more businesses view their funding arrangements as a commodity in the same way a consumer may regard their utility supplier.

Significant differences exist between funders, not just between the banks and the independent sector but amongst the independents material variations are evident. Its an old message but nevertheless a valid one, look for quality, independent advice.

…and so to Dublin

 

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