Specialist SME funding provider, Bibby Financial Services (BFS), has launched a new finance solution to provide much needed cash flow to the growing number of small and micro-businesses in the UK.
Forward Finance is an invoice finance solution for businesses with turnover of up to £300k and funding requirements up to £50k.
It helps to unlock value from unpaid invoices by immediately releasing up to 90 per cent of cash tied up in a business’s invoices on the day they are raised.
The remaining 10 per cent is then paid once the invoices are settled, minus a small fee.
The product allows business owners to retain control of their customer relationships, while providing working capital to enable growth.
BFS commercial director, Edward Winterton said:
“We have worked hard to develop a proposition which suits the needs of small businesses – particularly the growing number of micro-businesses with a requirement for flexible funding.”
The product has a rolling 28 day contract enabling businesses to access the funding as and when they require, without the rigidity of a long term contract.
The launch of Forward Finance comes in response to the increasing number of micro-businesses in the UK.
According to the Department for Business Innovation and Skills, these are business with up to ten employees, and account for around 95 per cent of firms.
Mr Winterton added:
“These enterprises are typically younger, smaller businesses and – increasingly – have a web presence and growing international footprint.”
According to a recent study of 1,000 SMEs by BFS, of those which have been refused bank funding over the past six months; 37 per cent were told this was due to poor personal credit history, with over a quarter being declined because they are new ventures.
“This research shows that more and more SMEs struggle to access funding they need to grow and that often this is because they haven’t been in business long enough.
“But without funding support in place, these businesses aren’t being given the chance to flourish and fulfil their full potential, which is why we have launched Forward Finance.”