Invoice finance is ideal for firms keen to capitalise on opportunities in 2011
The beginning of a new year usually brings renewed vigour for businesses and 2011 is no exception. Since the UK was declared officially out of the recession in January last year, the economy has seen tentative recovery and growth opportunities are beginning to be identified by firms of all sizes.
Here at Lloyds TSB Commercial Finance we are optimistic for the year ahead and, one month in, we are already seeing indications that 2011 could be a positive year for companies wishing to expand.
The coalition government’s upcoming budget, to be announced on 23 March, is expected to focus on encouraging economic growth and improving Britain’s credentials as a great business destination.
Invoice finance is ideal for firms eager to capitalise on the opportunities this presents and, over the past decade, the product set has cemented itself as a vital tool for companies looking for an essential liquidity boost.
However, for many businesses, the first quarter of the year is the toughest as unpaid invoices from Christmas continue into the New Year and consumers typically tighten their purse strings.
The VAT rise implemented on 4 January has also caused liquidity restrictions for some firms and absorbing the cost of the increase is simply not an option for many SMEs.
Invoice finance is ideal for companies which find themselves affected by these changing conditions. Based on issued invoices, the flexible facilities mean that when your client’s prices rise, the amount of cash that is available to them automatically increases. This provides a quick cash flow boost to deal with pricing adjustments.
We work with a wide range of intermediaries and, this year, continue to place a priority on maintaining close relationships and creating new contacts to ensure your clients receive the best possible advice and support in 2011 and beyond.