Articles
BUSINESS FINANCE MIDLANDS SME FEATURE
The following can attributed to Mike Boswell, area sales manager, Midlands
At Lloyds TSB Commercial Finance we understand that every company, no matter how large or small, has to start somewhere, which is why we are investing a lot of time, money and resources into enhancing the potential of small businesses in the region.
Every month we take on approximately 150 new customers in this market segment, of which 30 per cent are start-up companies. In fact, 80 per cent of those have a turnover of less than three quarters of a million pounds.
The decline in bank overdrafts during the past ten years has led to an increase in the number of businesses, particularly SMEs, turning to asset based lending (ABL) as a flexible and financially viable alternative to the more traditional forms of borrowing.
In an increasingly competitive marketplace, SMEs need all the support and encouragement they can get and ABL, which includes factoring and invoice discounting, can provide the necessary funding against assets such as book debts, stock, plant and machinery, HP and leasing.
This holistic approach to lending means that customers benefit from a far more tailored approach to finance where different elements can be added to the funding mix according to the needs and lifecycle of the individual business.
Another service that we have recently introduced is the 'Fledgling Start-up Scheme', in conjunction with Lloyds TSB Business Banking. Specifically designed for SMEs, the scheme gives the borrower 0 per cent interest on the loan for the first three months, plus a free web site to help the company promote itself during the first 12 months - a crucial time in the life of any new business.
We can also provide up to £250,000 of HP and leasing through our Asset Finance Direct service. This can be used to fund the acquisition of assets such as plant and machinery. This is becoming increasingly popular as it allows our customers to secure the funding by picking up the telephone and making one simple call.
These, combined with a range of other services, mean that we are now doing more for SMEs than we have ever done, which is an encouraging sign, both for us and for the market in general.
Lloyds TSB Commercial Finance is part of the Lloyds TSB Group plc.
