The holiday season is drawing to a close and new business enquiries still very much reflect the time of year; what has been positive over the last few weeks has been the conclusion, positively in the main, of some long term negotiations between funders and borrowers. Consequently our introductions have seen 4 businesses, in vastly different sectors, from food to textiles, benefit from additional funding.
In two cases businesses are using invoice finance for the first time with the other two moving from a High St Bank owned invoice financier to an independent.
This month the Government have got involved with invoice finance and, unusually, it seems to be a positive move, albeit one that they say wont be introduced until next year.
The proposal will see an end to ‘Ban on Assignment’ clauses, a tool sometimes used by large buyers and particularly utilised in the construction industry. The clause in the contract between buyer and supplier prevents the supplier from using the invoice to raise funds.
By way of an example there could be a situation where a small supplier provides goods or services to its large customer. The customer, in the contract, imposes a Ban on Assignment clause. Practically this serves little purpose but restricts access to funds as the supplier is unable to use any invoice raised for finance.
Hopefully this will be seen through to conclusion and wont simply be a positive announcement from central government that then gets quietly forgotten about………..we shall see.
Economic fact of the week and a striking one coming out of The Birmingham Post is that Midlands based Chief Executives of stock market listed businesses earn an average of £1.23m a year, around 50 times more than the average Midlands full-time salary of just under £25k. Its a fair assumption that this would be replicated across the UK.
There’s no objection to anyone earning any amount but the discrepancy here is noteworthy.
Undoubtedly the personal highlight of the week was a trip to the Royal Shakespeare Theatre to see Othello. Despite having lived and worked in Stratford for 25 years it was the first time since school back in the 1970’s. Its an incredible performance, as I’m sure they all are, and the RSC is a real gem in the Midlands generally and Stratford specifically.