Government urging more companies to look at invoice finance
Vince Cable has commented that Britain’s businesses can’t grow without access to funding and they need alternatives to traditional forms of bank credit and the Government actively wants to see a shift to non bank lending.
Bank funding to the SME sector has shrivelled since the banking crisis creating a cash flow crisis that is stifling small firms.
Mr Cable’s comments coincided with the launch of a guide to alternative sources of financing, published by the Confederation of British Industry (CBI) which includes factoring as well as other forms of invoice finance.
Hopefully more companies will look at factoring as a viable alternative to bank overdrafts and loans now that the Government has indirectly given this form of finance it’s seal of approval.