Cash flow is the life blood of all businesses and even more so for new starts and smaller companies. So in a market where banks are very cautious how can firms preserve cash or indeed gain a cash injection ? Asset Based lending may well be the answer.
The UK government announced on the 6th August that banks must now forward unsuccessful loan applications from small businesses to alternative finance providers, including asset-based financiers. According to the Asset-Based Finance Association (ABFA) the move could be a huge help for small businesses across the UK
“Asset-based finance is a key part of the tool-kit available to assist the cashflow of UK and Irish businesses,” said ABFA Chief Executive Jeff Longhurst. “It’s great to see the government acknowledge that the industry is already making an enormous contribution to funding the economic recovery and can make an even greater contribution in the future.”
It will be interesting to see how the banks distribute the opportunities and hopefully the Broker market can be part of this drive to help fund UK Businesses.