Comment on access to funding
16/08/2011 / Comments 0
Evette Orams, Managing Director of Hilton-Baird Financial Solutions, comments on SME access to credit facilities:
“The latest figures published by the Bank of England have revealed that Britain’s biggest banks fell just short of their lending target to small businesses during the first half of 2011. This is despite the Project Merlin initiative, which had widespread support across the political and economic spectrum.
“Given the context of ongoing negative press about the lack of availability of funding, it is essential that SMEs do not feel that they have run out of funding options. Access to finance need not be problematic, provided business owners and managers know where to look for funding and are prepared to consider alternatives to an overdraft in order to improve their cash flow.
“The climate means that there is significant cash flow pressure on most businesses and, under such circumstances, it is hard to look beyond familiar finance facilities. However, looking at other more suitable and viable options is the key to ensuring sustainability and future growth.
“Over-reliance on bank finance or any single form of finance creates a risk. The fact is the tighter the cash flow, the weaker the business in terms of lending criteria, making the task of securing finance even more challenging. It’s therefore imperative to act in a timely manner and ensure your business has access to the best possible facilities and can ride the ongoing waves of these challenging economic times.
“The most beneficial aspect of alternative funding solutions is the flexibility offered, as facilities can be specifically tailored to small businesses’ individual needs. For instance, asset based lending facilities such as invoice finance grow in line with turnover and can be adapted to fit a range of requirements through elements such as debtor protection and dedicated sales ledger management.
“We would therefore urge SMEs to look into the full range of funding options to maximise their chances of gaining adequate and appropriate funding on a timely basis. Put simply, cash flow doesn’t begin and end with a bank overdraft.”
Note to editors:
Evette Orams is Managing Director of Hilton-Baird Financial Solutions, which is part of the Hilton-Baird Group of companies. As an independent introducing agent, Hilton-Baird’s aim is to clearly identify their clients’ business requirements and match them up with relevant providers. The Group prides itself on maintaining excellent relationships with a broad spectrum of lenders and constantly delivering positive and innovative financial solutions.
Hilton-Baird Financial Solutions was voted Asset Based Finance Broker of the Year 2009 & 2010, demonstrating its reputation and the trust its clients place in its service.
The business’ affiliations to the leading financial industrial bodies, the Asset Based Finance Association (ABFA), the Finance and Leasing Association (FLA) and the National Association of Commercial Finance Brokers (NACFB), ensures it maintains the highest level of standards for its clients.
Hilton-Baird Financial Solutions helps businesses of all sizes to fulfil their potential by introducing the most suitable cash flow solutions. Read recent success stories here.
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