The most common problem facing all small businesses in the UK appears to be maintaining a steady cashflow. Factoring can offer SME’s a solution to this prevalent issue.
Factoring companies are now the largest provider of finance to small businesses in the UK, accounting for even more than banks, according to an article in New Business. The ABFA reported that in 2006 its members handled £173bn pounds of sales and handed over £13bn of funds to its clients.
They go on to say, in the current economic climate banks are more reluctant than before to provide overdrafts. Adding this to the recent “credit squeeze” has meant that cashflow for SME’s has to be addressed in other ways, one of which is factoring.
Loading ...
2 comments so far
1 Client Finance » Blog Archive » Cashflow Problems? - Factoring is the answer // Jan 24, 2008 at 1:47 pm
[...] Original post by SME Business News [...]
2 Smart Factoring Quotes // Sep 12, 2009 at 11:40 am
Factoring certainly seems to be the right product for the climate that we are encountering. Benefits for clients include improved cash flow and the credit checking of their customer base. This can prevent bad debts. I understand SME also offer selective credit insurance which could help minimise bad debts.