It's been reported that the number of SME's using invoice finance to increase working capital has risen dramatically in the second quarter of 2010.
It was also reported in the same article that banks have to reserve capital against overdraft facilities even when not fully utilised.
This second point probably explains why many SME's are being pushed into their banks invoice financing facilities (as revealed by our customers) by various means. Once there, what awaits the newly hooked SME is a raft of charges that either didn't exist or are much higher than before the "credit crisis". Once all charges are taken into account there are much cheaper factoring lenders than high street banks out there!
If your business is being pressured into any kind of factoring deal then please feel free to contact us for a no obligation & confidential discussion about alternative commercial lenders.
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