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Recent Close Brothers Business Barometer research has revealed why some companies choose invoice finance products. 

The Close Brothers Business Barometer asked over 900 UK SMEs their reasons behind considering invoice finance or asset based lending as an alternative to bank loans and overdrafts. 

Before opting for invoice finance, 17% of firms were interested in the product because they thought it offered a cheaper alternative to other finance options. Meanwhile, one third of respondents believed this type of funding was a quick way to access cash.

The responses indicate that company chairs are motivated by costs, with over two fifths hoping it would be an affordable option. Meanwhile, a third of business owners were driven by the speed of acquiring funding.

How could invoice finance and asset based lending help SMEs in the year ahead?

Invoice discounting and financing release funds from unpaid customer invoices. They provide a flexible way to fund investments, as companies can access cash as soon as an invoice is raised and the amount borrowed grows inline with the business. 

Asset based lending is an additional option, where invoice finance is coupled with capital released against other business assets such as stock, property, and plant and machinery. Asset based lending is ideal for larger businesses looking to raiser higher amounts.

Why work with Close Brothers?

Working with a partner such as Close Brothers has many benefits, including access to personal advisors who can help find the right business funding with industry-specific financial planning.

Our IDeal™ platform is a market leading invoice discounting software, which gives you instant access to cash from your invoices, 24/7 and from anywhere in the world. It is easy-to-use and reliable and the self-reconciling programme saves businesses time. Once supported by IDeal™, capital can be allocated for investments such as purchasing new equipment, hiring staff and growing trade.

*These statistics have been updated and are correct as of August 2020.

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Close Brothers Invoice Finance
Ridgeland House
165 Dyke Road, Hove
East Sussex, BN3 1UY

T: 0127 305 9530 *

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