Invoice finance, which includes factoring and invoice discounting, is a highly effective source of business funding for Small and Medium Sized Enterprises (SMEs) looking to boost cash flow without the need to extend overdrafts or take out new business loans.

Growing pains can often be a problem for successful small businesses which find that rocketing demand can quickly put a business’ working capital under pressure.

And as order sizes begin to grow, many fledgling firms are in danger of overstretching their cash reserves as outgoings outweigh incoming payments, a situation compounded if a high concentration of debt rests on a single customer.

It is therefore crucial that growing SMEs secure the correct finance option to support their growth aspirations.

Lloyds TSB Commercial Finance’s funding solutions are more flexible than traditional options such as overdrafts and business loans, helping firms service bigger contracts by using the cash tied up in existing assets.

Asset based lending can generate cash at a rate and scale that suits the short and long-term requirements of a firm by unlocking the value of machinery, stock or a growing order book.

Our factoring facilities can also assist growing SMEs with their credit management and cash flow discipline by taking full responsibility for running the sales ledger, enabling firms to reduce debtor days and maximise stock turn.

Our finance packages are ideal for firms looking to:

• Bridge the gap between completed orders and the receipt of payments from customers
• Support new business wins and fulfil contractual agreements by securing funding to purchase raw material costs and pay wage bills
• Fund investment in marketing and product innovation or differentiation
• As new businesses often rely on a narrow sales ledger when they start trading, the effect of bad debt can be more acute for start up enterprises.

Debtor Protection is an extra feature offered by Lloyds TSB Commercial Finance to its customers, insuring you against bad debts by paying outstanding invoices should a debtor become insolvent.

Contact us to find out more about how Lloyds TSB Commercial Finance’s flexible working capital solutions can assist your SME. Alternatively find out how much you can raise by using our services using our quote engine.

The provision of credit or leasing services by us is subject to your meeting our Credit approval.  Please ensure that you only apply for credit or leasing services that you can comfortably afford.