A particular problem for some small businesses, where the availability of overdrafts was said to be continuing to reduce, with banks preferring asset-backed lending and seeking additional personal guarantees.
Manchester (PRWEB UK) 30 November 2012
Target Business Assist Ltd, (specialists in finding invoice factoring and invoice discounting solutions for businesses) have found that small businesses are still hit by high bank rates, despite the government backed Funding for Lending scheme being launched three months ago.
The FLS (Funding for Lending scheme) was designed to provide banks and building societies with an incentive to lend, by giving them access to reduced funding costs so that they can make loans cheaper and more easily available for businesses and consumers.
However, doubts over its benefits to small businesses were already being raised just a month after it was launched.
The report (referred to below) also revealed that the FLS appeared to be having more of an "immediate impact on the availability of residential mortgage lending than on business lending".
According to the Bank of England agents' report this month, business lenders are tightening terms which is "a particular problem for some small businesses, where the availability of overdrafts was said to be continuing to reduce, with banks preferring asset-backed lending and seeking additional personal guarantees."
Where businesses need to finance debtors, invoice factoring and/or invoice discounting is an attractive alternative to overdrafts. Nick Cookson of Target Business Assist says that finance can be arranged within days for a well maintained debtor book. Target can introduce Lenders appropriate to the size and sector of a business.
Target Business Assist Ltd can help your business secure the vital finance that it needs to survive over the winter months by arranging Invoice Factoring, for more information on how they can help you please visit http://www.targetbusinessassist.co.uk/ or call Nick Cookson on 0844 846 7475 or email info (at) targetbusinessassist (dot) co (dot) uk.