Tag Archives: weekly invoice finance news

Weekly digest

The week completed, 20th February 2015

JMS

Not as busy as the last couple of works, attributable, probably, to half term.

The range and type of businesses being spoken to is broad, from a construction related business looking to fund a particular project, a metal fabrication business, a couple of recruitment businesses, a distributor of specialist bikes, a drinks distributor (see below), all are looking to raise additional or replacement working capital.

In all cases we have on the books at the moment it would seem likely their bankers would, in all probability be able to assist, but in all cases alternative funders are the most likely winners. They are competing on price and are moving the transaction forward at a pace with which the banks cannot keep up.

Additionally the banks are suffering from collective reputational damage. This is further compounded by failings in relationship banking where few businesses are able to name their relationship manager let alone get hold of her/him.

If all the transactions currently pending convert to actual business then just under £2m will be injected into UK businesses. Funding for viable businesses with workable ideas is available from a variety of sources be they conventional or alternative. Rates are low, in comparison specifically to those of a few years ago. What acts as a handbrake is still confidence as a general term in describing a businesses outlook on future growth.

The time seems appropriate to concentrate on the drinks distributor…….

 

beer

 

 

Weekly digest

The week completed, 16th January 2015

JMS

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.

Interesting to see and listen to Digby Jones (as pictured below)JMS & Lord Digby Jones

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.

Weekly digest

The week completed, 12th December 2014

JMS

Christmas is most definitely here and businesses are deferring decisions to the New Year. This can be a little frustrating as funders are willing to offer and complete facilities and there is still plenty of time.

Two dreadful instances this week of large businesses deliberately extending payment terms to small suppliers seemingly with no legitimate reason. There’s no good time or reason for this practice and some large buyers seem to adopt an unacceptable almost macho stance in squeezing suppliers.

Without the permission of my client I clearly cannot name these well known businesses. Its a recurring and ongoing subject and sadly for SME’s I guess will continue.

I will be losing my bet, made this time last year, that Bank of England Base Rate would have risen from 0.5% by Christmas 2014. (Given the absence of any further MPC meetings this year Base Rate will end the year at 0.5%). Economically Base Rate needs to rise next year but this is unlikely before May. Although the Bank of England sets Base Rate free from political interference, I am a cynic!

The week has been punctuated by a couple of Christmas networking events with more next week too. Also next week will see a visit to a High Street to give the retailers a boost.

Weekly digest

The week completed, 10th October 2014

JMS

in the week just finished,  to October 10th 2014
a funding facility was concluded for a Warwickshire based business which switched from a bank owned invoice financier to an independent. The business received a material increase in funds.

Enquiries were received from a couple of staffing businesses and coincidentally both supply people to good quality (from a credit point of view) customers but actually invoice a specialist payroll management business which complicates matters.

A fair bit of networking in and around the Midlands and too long spent in traffic around Stratford