Bibby Financial Services boosts SME funding in Wales by 40 per cent
Specialist funder significantly increases funding to Welsh businesses over 12 months
Small and medium-sized businesses in Wales benefitted from almost £20 million in funding over the last 12 months, thanks to support from specialist funder Bibby Financial Services.
The UK’s largest independent invoice finance provider increased lending to firms in the region by more than a third (38 per cent) year-on-year, from £14.37 million in August 2013 to £19.9 million last month.
Recent figures from the Asset Based Finance Association (ABFA) underline the vital role of funding to SMEs, with the three months to July signifying the biggest ever quarter for asset based finance, with a record £18.9 billion of funding provided to businesses.
But while asset based funding is on the increase more traditional forms of finance are contracting. According to the Bank of England business lending through its flagship Funding for Lending Scheme (FLS) continued to fall in the second quarter of the year, dropping a further £435 million.
Sharon Wiltshire of Bibby Financial Services Wales said: “We have been able to increase vital funding support to businesses throughout the country over the past 12 months, making a significant difference to their growth ambitions. But there are still many businesses struggling to secure funding so it’s important that invoice finance providers and other funders step-in to offer this support – particularly at a time when the Funding for Lending Scheme doesn’t seem to be hitting the mark.
“We want businesses in Wales to know that we’re here to support them – not only through our funding – but also with our expertise in relation to credit control management, importing and exporting, and our specialist construction finance team.”
Wiltshire is now calling for more businesses to review their funding sources and to consider wider options, such as invoice finance which is increasingly popular among the UK’s growing army of businesses.
Wiltshire added: “Businesses need to recognise that they have a choice when it comes to finance, and this should include looking into the benefits of using alternative, sustainable sources of funding, such as invoice finance.”