Time to look beyond the banks…

It’s great to see that a lot more business owners are open to the idea of using Invoice Finance. The first port of call is usually the bank, and their invoice financiers are definitely open for business – and busy!  However, not all SMEs meet the banks’ strict lending criteria. Any business with a poor financial track record,  a weak balance sheet or heavy debtor concentration will probably struggle to get Invoice Finance from their bank.    Whatever the reason, it’s very frustrating for business owners if they are turned down for finance, especially if their company is showing signs of growth.

So, what can a business owner do in these circumstances? The good news is that there are alternative Invoice Finance providers who take a more commercial approach to funding.  Their lending criteria differ from those of the main banks. Typically they can lend to companies with a projected turnover of €200K+ compared to the banks’ minimum turnover requirement of €750K+.  They can fund a wide range of businesses, including exporters, new starts and re-starts and single debtor ledgers – scenarios that the main invoice financiers would typically not have an appetite for. Because of their flexible approach,  these funders can help many SMEs when the banks can’t.

At Clancy Cashflow Solutions,  we’re used to helping business owners whose needs are  outside the main bank lenders’ criteria, for whatever reason.   If a business is turned down by their bank, often they don’t bother looking anywhere else.  Over the years, we’ve secured Invoice Finance for hundreds of businesses in these circumstances. More often than not, we can source an alternative funding solution – it’s a matter of knowing how structure a deal, and exactly who to speak to for any given situation.

We’ve noticed that,  for many business owners,  flexibility is now a key consideration when choosing a funding partner.  As a result,  they are happy to consider the alternative Invoice Finance providers when looking for working capital for their business.