Cutting the bureaucracy to help SME businesses access finance will be a key new legislation. 'Legislation will be introduced to help make the United Kingdom the most attractive place to start, finance and grow a business.' Said The Queen.
As part of this, banks that decline credit to business will be made to refer the business to more suitable lenders who would be open to discussing credit options. This comes at a time when their is considerable increase in alternative lending solutions, from the likes of the new wave peer-to-peer business lending platforms, through to the more established Invoice Finance and Factoring companies.
Invoice Finance is playing a stronger roll in the UK market, and not just during the recession. As business comes out of the downturn, many are seeking to grow and require steady cash flow and capital for expansion.
Invoice Finance; an alternative solution
Ultimately, the fact that the more recognised high street banks will no longer be able to hold back small business, as they will have to refer to more suitable lenders, means that SMEs will be able to access the cash and credit required to manage sustainable growth, without a detrimental affect and adverse risk.
If you are seeking more information on invoice finance, why not look at our top tips for presenting your business to Factoring companies.