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Factoring & Invoice Discounting

CBI right to encourage non-bank finance for SME’s

By CreditMan Monday, July 2, 2012

Mid-size businesses are being urged to see non-bank finance as a realistic, speedy and low-risk option for easing cash-flow and maximising business sustainability.

In one of his latest speeches, the CBI Director-General John Cridland, said the level of finance in the economy must increase if the UK is to secure sustainable growth. In an eight-point plan for getting credit flowing to businesses, he highlighted the need for non-bank finance to be urgently boosted for mid-sized businesses.

Reacting to the CBI's latest guidance, Richard Keenan, Director of Embark Finance, a specialist finance brokerage, said: “The CBI has set out its suggestions for getting more credit flowing to businesses, which is needed to achieve growth, support jobs, and to stop the recovery being choked off.

“It is right for the CBI to include the need to ‘boost non-bank finance’ to mid-sized businesses, notably as this represents a relevant and viable part of the overall strategy for achieving economic recovery. However, all too often SME’s discount alternative finance options such as Invoice Finance, as they mistakenly see these as a ‘less attractive’ option for easing business cash flow, when compared to finance provided via the banks.

“The opposite is in fact true. Indeed, with banks still reluctant to provide finance to mid-size businesses, lending at an all-time low, and security and personal guarantees at best onerous, Invoice Finance should be seen as a strong contender for sourcing much-needed, alternative finance for SME’s.

“Businesses would do well to open their minds to all alternatives for finance, particularly when needing speedy solutions to issues over cash flow, endemic in the economy at the current time - SME’s will be surprised at the benefits,” he says.

Invoice factoring traditionally operates by borrowing against the company’s turnover.

“Businesses can expect a quick decision and there’s less emphasis placed on personal guarantees. So, this type of finance is a very real and relevant option for maintaining business operation, productivity and ultimately sustainability.”

Embark Finance, based in Lutterworth, is an independent commercial finance brokerage within the invoice finance, factoring, asset and trade finance arena. The firm specialises in raising working capital by leveraging assets within a clients’ business and has a proven track-record of providing relevant solutions to a business’ individual needs. For more information, visit: www.embarkfinance.co.uk, Tel: 01455 554499.

About Embark Finance:
Embark Finance is an independent commercial finance brokerage within invoice finance, factoring, asset and trade finance. The firm specialises in raising working capital by leveraging assets within a clients’ business.

The team at Embark Finance has extensive experience across all areas of the finance sector, with established links with and a strong reputation amongst the UK's leading banks and independently owned lenders, making it well placed to match the best solution to a business’ individual needs.

Based in Lutterworth, Leicestershire, Embark Finance can arrange short-term and one-off transactional agreements, provide facilities to new start businesses, and support established businesses with a relevant and competitive financing solution.

Embark Finance works with companies across a variety of industry and market sectors, to include food producers, printers and construction companies. It is a member of the NACFB, the National Association of Finance Brokers, which raises the standards of proper professional practice in the commercial broker industry.

For more information, visit: www.embarkfinance.co.uk, Tel: 01455 554499

Read more at www.embarkfinance.co.uk