Small Business funding update

One of our commercial funding partners Bibby Financial Services has launched the Small Business Cash Access funding facility, aimed specifically at start-ups and small and micro businesses with a turnover of £300,000 per annum or less. The facility has been launched specifically to support those smaller businesses most in need and entrepreneurs looking to start a new venture. Andy Tait, executive director at Bibby has recently said: “We have always recognised how tough it is for businesses of all sizes to succeed, but it is particularly difficult for those at the smaller end of the scale or those starting out who are trying to grow in a negative climate. “The recession led to a wave of new businesses and entrepreneurship as many people found themselves with the opportunity or little choice but to go it alone. Now those businesses are starting to mature, taking on staff and moving into bigger premises. But they are not getting the support they need financially, because they are considered as too much of a risk by some funders.” Research from Bibby carried out during Q1 for the Business Factors Index shows that just 4% of SMEs have applied for funding from initiatives such as the National Loan Guarantee Scheme. Andy added: “Our research has revealed that many smaller businesses are relying on their inflexible overdrafts or dipping into personal savings as a way to finance their companies, which are in no way sustainable because, quite simply, those pots of money have a limit.” The new facility from Bibby advances 90% of the value of the invoices raised to customers by the business and releases the remaining 10%, minus a small single fee once the customer settles the invoice. “The aim is to allow people who have not considered invoice finance before to try this credible form of flexible funding and reap the rewards it can bring,” explained Andy.