Record month for funding!
£40m made available to new customers in July!
The UK’s largest independent invoice finance provider significantly increased its funding to businesses in July in what is the funder’s best month on record since 1985. Figures come as research shows that 59 per cent of SMEs are planning to invest in the months leading up to October.
Bibby Financial Services (BFS) made 114 funding agreements, providing available funds of over £40m to new business customers in July. BFS Chief Executive, David Postings, said results highlight more and more businesses moving away from traditional bank-lending.
He said: “There has been an important step-change in attitudes towards non-bank lending over recent months. The tides are turning as businesses are seeing the value and benefit of other forms of finance, such as invoice finance.
“Across the board, we have seen a huge increase in funding to businesses of all sizes, across a broad spectrum of industry sectors.
“Our corporate team, which deal with larger businesses, construction finance team and trade business - which provides import finance - all had record months for new funding. This is a fantastic achievement for us, but it also provides a significant boost to UK PLC”, Postings added.
Figures come after a study of 1,000 businesses - with turnover of up to £25m - found that well over half (59 per cent) expect to invest in recruitment, training and technology in the months leading to October.
Findings from the SME Tracker show that of those looking to invest, a quarter will spend on technology and equipment (27%); one in five (20%) will recruit new staff and one in four (23%) will invest in employee training programmes.
In addition to securing finance to fulfil these investment plans, Postings said the jump in funding is down to growing awareness of alternative forms of finance following the announcement of the Government’s Small Business, Enterprise and Employment Bill as part of the Queen’s Speech in June.
He said: “It’s clear that UK SMEs are investing for the future, which is extremely positive so it’s vital that they have funding in place to facilitate these growth aspirations.
“The Government’s efforts to expand business lending beyond banks have been well documented in the media, and this has built awareness of the services provided by funders like Bibby Financial Services.
“Increasing competition is a welcome sign for UK SMEs. Gone are the days when banks would be the first and only port of call for businesses looking for finance.”
Postings concluded: “SMEs are spreading their gaze when it comes to sourcing funding and we are half way through a multi-year investment in technology, which will enable businesses to access funding in real-time online, enhancing the service we provide to our customers.”