- 16 Jun
Invoice Finance Should Be The Natural Choice For Problems Raising Business Finance
Invoice finance, such as factoring & invoice discounting, should be the natural choice for businesses that are anticipating problems raising business finance for their businesses. However, our research suggests that many businesses still anticipate problems raising business finance despite invoice finance being freely available.
Of the 59% of businesses that said they were anticipating problems raising business finance during 2011 (100 SMEs sampled), these were their reasons for that expectation:
- 39% Banks are cutting back
- 29% VAT/tax arrears
- 25% Losing customers
- 5% My provider is becoming increasingly cautious & less flexible
- 2% My credit rating is poor
Invoice finance could be available in all of these situations, and in some cases from bank backed invoice finance houses. This perception is not becoming common knowledge as invoice finance should be the natural choice in many of these cases.