Leading business finance providers, Bibby Financial Services today reports record rises in the number of small and medium sized businesses (SMEs) shunning the bank overdraft or loan in favour of invoice finance.
More and more businesses are turning to alternative funding solutions such as factoring or invoice discounting according to new statistics from Bibby Financial Services, the UK’s leading independent cash flow provider.
The firm increased the number of clients using invoice finance solutions such as factoring and invoice discounting, by 33 per cent in 2003, outstripping the market, which only rose by 6 per cent.
Increasing numbers of SMEs are turning away from the more traditional forms of funding such as bank overdrafts and term loans and are using invoice finance as a means to improve their cash flow, raise funds for buy-outs and acquisitions, finance expansion plans and purchase new equipment.
