Factoring Finance Blog – hard to secure funding in next 12 months says Investec

According to recent research by Investec, the  Specialist Private Bank it suggests that nearly two-thirds of some of the UK’s most successful entrepreneurs believe it will remain ‘very hard’ or ‘quite hard’ to secure access to capital over the next 12 months.

Its something that small business owners have known for some time but the main difference with those surveyed is that they reflect the demographic where access to finance is typically the least difficult to secure.

The survey, conducted in May 2011, revealed 60% of the 51 company owners (i.e. respondents), 80% of which have a business with turnovers in excess of £10m, believed it would be difficult to obtain capital throughout 2012. For such company’s, whom have audited accounts, trading history and as the survey suggests with “most successful entrepreneurs” we can deduce that if those who are deemed “successful” are finding it difficult, what about those not quite there yet?

The majority (68%) of those taking part in the Investec research said they had plans to use external sources to raise capital over the coming year, with over a quarter (26%) planning to raise in excess of £10m, two thirds of which (i.e. 26% looking for funding) said they planned to use bank loans and overdrafts, the remaining third turning to venture capitalists.

Ed Cottrell of Investec was quoted as saying “Our findings suggest that many of the country’s leading entrepreneurs are feeling optimistic about their future prospects, but these could be put in jeopardy if they cannot obtain access to capital,”

Funding Outlook

We at Factoring Finance have had some major successes in arranging client deals (both invoice discounting and invoice factoring) for small and medium sized businesses and as the piece suggests, (although limited to 51 business owners) the finance environment remains challenging to say the least.

As reported in another of our blog posts, our experiences seem to mirror those of the Invoice Finance sector as a whole when looking at the latesest ABFA (Asset Based Finance Association) data, so it is encouraging that although the UK small business sector is still finding it difficult to secure traditional forms of borrowing, that there is some slack being taken up by our industry.

For more details on how Factoring Finance can help you avoid late payment problems, cash flow difficulties, and improve your debtors book with, Invoice Finance products such as Invoice Factoring & Invoice Discounting or other Commercial Finance and/or Credit Insurance, simply get in touch and we’ll do the rest.


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