Lloyds Bank supports growing SMEs

Lloyds Bank supports growing SMEs
UPGRADES to economic growth forecasts, growing consumer confidence and the prospect of a recovery in the Eurozone mean the stars are beginning to align for ambitious Yorkshire SMEs.

Lloyds_Bank_Logo resizedPaul Valley

Paul Varley, Senior Manager, SME Banking, Lloyds Bank Commercial Banking

 

Paul Varley, Senior Manager, SME Banking, Lloyds Bank Commercial Banking

UPGRADES to economic growth forecasts, growing consumer confidence and the prospect of a recovery in the Eurozone mean the stars are beginning to align for ambitious Yorkshire SMEs.

Firms with expansion on their agenda can take heart from the increasing momentum of the UK’s economic recovery and recent upgrades to growth predictions for 2013 and 2014.

And with interest rate rises predicted to remain on hold until 2015 giving an increasingly stable platform on which to plan for the future, the case for investment is gathering weight.

But maintaining cashflow is always an important consideration for SMEs, which is why ever-growing numbers have been turning to asset based finance as a flexible way of funding their ambitions without overextending themselves.

At Lloyds Bank we remain committed to raising awareness about asset based finance as a form of funding which can free up cash to fund investment or pay overheads by unlocking equity tied up in expensive machinery or outstanding invoices.

According to the latest Lloyds Bank Business in Britain survey, almost a third of SMEs in Yorkshire are experiencing cash-flow problems, with 60 per cent attributing this to late payments.

And the number of Yorkshire firms experiencing cash-flow difficulties had increased, with 30 per cent reporting problems in July, compared to 26 per cent in January.

Growing awareness of asset based funding means many firms will know that Lloyds Bank Commercial Finance can lend against assets like stock, plant or property, helping release money into the business where it is more useful.

Yorkshire electrical cable manufacturer Doncaster Cables has grown its product range and plans to target emerging Asian markets after securing a £6.5 million asset based funding package from Lloyds Bank Commercial Finance earlier this year.
Lloyds Bank Commercial Finance was able to provide a £1.5 million stock funding line, secured against the value of the firm’s finished goods, which the firm used to buy new machinery that will enable it to supply a wider range of products to new overseas markets, including the Far East and Libya.
And more small businesses are discovering the benefits of factoring, which is available to firms with a turnover of at least £50,000.
It frees up working capital by giving firms access to up to 90 per cent of the value of their outstanding invoices, so they do not have to wait months for payment.

The bank also takes over the management of the firm’s invoicing and sales ledgers, helping flag up any risks and freeing up time.
Huddersfield-based CH Fabrications, which makes steel-framed buildings, built new premises and took on two new workers this year with the support of a Lloyds Bank Commercial Finance factoring facility.
The business was able to build a bespoke new factory thanks to an £88,000 facility, which boosted capacity and allowed CH to bid for larger contracts across Yorkshire.

For businesses with a turnover of £250,000 or more which are looking to remain in charge of their invoice and credit control processes, confidential invoice discounting can provide an alternative.
It unlocks up to 85 per cent of the value of invoices, often within 24 hours of them being issued.
Asset based finance is now an established part of the range of tools used to finance the growth of firms, and Lloyds Bank is at the forefront of combining traditional and asset based finance solutions.

SMEs have been called the lifeblood of the UK economy and Lloyds Bank is absolutely committed to helping them thrive.

In Yorkshire, and across the UK, the positive feedback we get from our SME customers gives us the confidence to know that our asset based finance products are the right solution at the right time.

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