LONDON, UNITED KINGDOM--(Marketwire - Sept. 28, 2012) - Whilst a report provided by Bibby Financial Services showed a surge in the manufacturing sector to the highest client turnover rate since the beginning of the recession; it came with a warning that if promising businesses are not given the right support it could result in financial trouble for those SMEs concerned.
UK CEO for Bibby Financial Services, David Postings said: "The business turnover data we have from the second quarter from our own client base demonstrates the importance of funding options to business in the UK.
"The Government and the Bank of England announced that more funds will be available to businesses through the Funding for Lending scheme, but once again it will be the banks that act as the conduit for those funds.
"Given the strength of the asset-based lending sector and the spotlight on alternative finance by the Government itself, this could have been an opportunity to deliver funding through a wider range of channels."
He went on to highlight the notion that if other business, who have a promising foundation, are not given the necessary support from the Government, or who are not aware of the funding options available to them, could quite easily fail considering the uncertain nature of the UK and European economies.
The report by Bibby surveyed over 4,000 SMEs from their existing client base, who use UK factoring services as well as other forms of invoice finance, to secure asset based funding to improve and expand their enterprise. This research showed an improving performance in the second quarter of 2012 in the manufacturing and construction sector, as well as transport.
Invoice finance solutions have clearly had a positive impact on Bibby Financial Services existing client base; the hope is that more and more SMEs will become aware of the asset based funding options available to them and use these to grow and continually improve.
Notes to editors
- Bibby Financial Services is an independent asset based finance provider, providing cash flow funding for to small and medium sized enterprises businesses across the UK, to help them to grow and realise their potential.