Other lending trending upwards
As bank lending continues to decline it has been reported that asset based financing to the SME sector, including factoring and invoice discounting, is on the increase according to an article in today’s Financial Times.
The chief executive of the finance brokers association claimed that “there was still a lack of awareness among small businesses and their advisers on alternatives to bank loans” and that the commercial finance brokers’ association, which compiled the data from its 1,000-plus members who arrange loans for businesses, will join the British Bankers Association to brief MPs on Monday on the use of alternative finance.
A BBA spokesman said banks were working with brokers to help customers gain access to alternative sources of credit:
“While banks are open for business there are other ways to get finance. Bank finance is not always right for companies.”
Factoring insiders have been long aware that despite the fact that over 47,000 companies now use the services of factoring or invoice discounting it is still a lack of general awareness of invoice finance that hinders further growth.