SMEs in the South West UK more likely to trust banks than MPs?

According to research by a fellow UK invoice finance firm, almost 75% of SMEs in the South West said they don’t trust their local MPs, compared to 43% who said that they didn’t trust their bank.

Factoring FinancePerhaps the question should have been “which is more destructive to UK small business, your MP or your bank?”

Although more than half of the 600 SMEs polled believe that government support for small businesses in their region isn’t good enough, ironically, when asked what the government could be doing to better, the overwhelming answer was that the banks needed to be policed more stringently.

The opinions voiced in the South West are atypical of those around the country as SME’s are finding it increasingly difficult to access small business finance at a time when late payment problems do not seem to be getting any better. Cash flow being the balance between monies out and monies in is effectively decimated if there is no overdraft to fund short term shortfalls because of late payments. As such, more than 25% of respondents stated that their main business concerns were bad debt, late payments and cash flow problems.

So then, at such a crucial economic time when accessing bank finance is akin to finding the Holly Grail it doesn’t come as a surprise that over a third of South West businesses polled want to see the Government fine the banks for not lending and pressure put on them for failing to reach lending targets.

And with more taxpayers funds being earmarked for Irish bank bailouts, is it any wonder that UK small businesses feel left out in the cold?

Late payment problems need not cripple your business.

Invoice Finance facilities such as invoice factoring and invoice discounting work by advancing you a percentage (eg 85%) of your outstanding customer invoices and injecting the cash back into your business. With factoring, the finance provider can even chase the payments on your behalf or put in place bad debt protection to give you greater piece of mind from your customers going out of business.

Unlike elusive bank borrowing, the only security are the invoices themselves and as the funds are simply advances on your sales ledger, invoice finance is not prone to the same disadvantages over bank borrowing in not being able to meet your repayments.

To discuss how you can unlock the cash in your invoices get in touch and Factoring Finance will source the best fit facility at the best rate for you, from our UK wide independent broker network.

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