24/09/2010
Many small firms in the UK are benefiting from invoice discounting and factoring services to improve cash flow while economic conditions remain uncertain.
The Business Desk cites research by the Asset Based Finance Association, which concludes that procedures such as invoice discounting and factoring provide an excellent finance solution for the majority of small firms that use the services.
The study mainly focused on Birmingham, finding that 85% of the small firms in the city would recommend the services to other businesses looking to free up funds.
It would also appear that there is a growing optimism among small business owners, with 80% of the firms questioned saying that they believed economic conditions to be on the mend.
Small firms can often find their cashflow limited when they first open for business, but this new survey shows that invoice discounting and factoring can really help to drive growth.
Kate Sharp, chief executive of the Asset Based Finance Association, said that many small and medium-sized businesses are now optimistic about the future, and added that access to finance played a major part in this confidence.
"This is undoubtedly helped by being able to access finance and local firms are clearly seeing invoice discounting and factoring as one of the main ways to source much needed funds for growth," The Business Desk quoted Ms Sharp as saying.
Joseph Jeffries