The Glasgow and Leeds offices of Ultimate Finance have committed £30m each, over the next 12 months, to help SMEs in their region which are being held back through lack of funding.
The pledge follows a successful 12 months for the asset-based lender, which opened both offices at the beginning of last year.
Both have grown considerably since then, with fifteen experienced personnel, with expertise in invoice, construction and asset finance, now operating across the Leeds and Glasgow offices.
As a result of the ongoing success, additional sales personnel, client managers and support staff, including those with trade finance expertise, are being recruited.
Commenting on the £60m pledge, Richard Waldman who heads up the Northern teams, said,
“Through our six offices across the UK we are regularly introduced to successful businesses who are frustrated their growth is being hampered by cashflow constraints.
“They want to take on new contracts and increase orders with their existing customers, but as they can wait 90 days or more for their invoices to be paid, they don’t have the cash available to do so.
“They have tried borrowing money through traditional routes but are still finding banks reluctant to lend. We are therefore seeing more SMEs using invoice and asset finance as it enables them to have their invoices paid the next day.
“This is backed up by the latest findings for quarter three by the Asset Based Finance Association. It has calculated that funding to UK and Irish businesses, secured against invoices and other assets, has reached £20 billion for the first time ever; an increase of four per cent on the same time last year.
“SMEs are now recognising they have earned the money by providing goods or services, so why can’t they have the money now rather than having to wait months for it.
“There are so many successful and growing SMEs which are being held back because of the short-sighted approach of lenders. It is our aim therefore to work closely with companies with a turnover of up to £50m to whom we can provide as much as £5m funding in order to provide a flexible solution to their cashflow problems.
“From a standing start a year ago we have ‘hit the ground running’ by building teams in Leeds and Glasgow with unrivalled expertise,” continued Richard.
“We quickly entered the market and because we are able to turn deals around quickly we have taken many of our competitors by surprise. This has resulted in us comfortably beating all the targets each office was set for its first year.”
Ultimate Finance Leeds (L to R) Michael Beer, Richard Waldman, Emma Booth, Hollie France, Michelle Hoole, Adam Myers and Noel Haverly