Here at Bibby Financial Services we’re pleased with this weeks’ call from the Government for banks to refer small and medium size businesses to other lenders. This comes after our research revealed that one in five SMEs was turned down for bank finance in the last 12 months.
We think it’s positive that the Government have recognised that accessing finance is still a challenge for a large number of viable businesses. The Government is looking at ways to address the issue as part of the Small Business, Enterprise and Employment Bill.
Not trading long enough
Our own research highlighted that nearly half of SMEs rejected for finance were turned down because they hadn’t been trading for a long enough period of time. It’s also worrying that many business owners are turning towards self-financing when banks turn them down, unaware that invoice financing is the first choice for many business people looking for funding.
We’ve blogged before about business owners being turned down for financing because they haven’t been trading for long enough. The blog goes onto explain the dangers of self-financing and the benefits of invoice financing. The blogpost is a good place to start if you find yourself in this position.
Strong order book
At Bibby Financial Services we’re experts at finding ways of supporting start-up businesses and helping them fund growth, from the start of the business right the way through to maturity.
We have a wide range of products that should fit most business finance needs. Products like factoring and invoice discounting are flexible and straightforward to secure. Unlike high street banks we have specialists in specific sectors like construction, manufacturing, transport and wholesale.
Our criteria is different to a high street bank, if a relatively new company can show that their order book is strong, they can receive financing from Bibby Financial Services quickly, without needing to jump through too many hoops.
Alternative to bank funding
At Bibby Financial Services we pride ourselves on our local business presence, call us on 0800 91 95 92 to speak to a representative who is a business expert in your local area, or request a call-back online. Our products and expertise often make us the first choice funder of many businesses.
We’d encourage business owners to keep checking back in The Bibby blog for more news and updates from the UK’s leading independent invoice finance specialist. We have over 7,000 customers using our services to help realise their business growth ambitions. If you’ve been turned down for business finance we’d like to help.