Opinion
Making capital work Balancing cashflow and growth Phil Chesham Head of Invoice Finance Time Finance
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ver the next six months, we’re expecting to see more and more SMEs turning to finance to support their cashflow. The current economic challenges will only amplify this need with global supply chain issues, rising interest rates, soaring inflation, fuel costs and upcoming tax hikes all posing as threats to the good progress businesses have made over the last 12 months. Our research continues to reveal that a lack of working capital is one of the greatest barriers to growth that a business can face. In fact, more than one in three UK business owners believe that access to finance will help them to take on and overcome the economic challenges 2022 continues to throw at them. In our recent poll, over 50% of the financial advisers and accountants we spoke to spotlighted invoice finance as a solution their B2B 50 | NACFB
clients would likely turn to this year to release working capital, overcome challenges, and grasp hold of new opportunities. But what makes invoice finance such a staple and popular solution in a time of economic turbulence? According to our existing client base, 73% turn to invoice finance solutions to not only improve cashflow but to ensure that their employees, suppliers, HMRC and other financial commitments are paid on time. More than two in three told us that their invoice finance facility provides them with peace of mind and more financial freedom. Over half find this to be a more flexible solution than a bank facility,
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91% of clients rank a relationship-driven approach as the most important thing they look for in a funder
