Yorkshire Bank earmarks £100m for invoice finance

YORKSHIRE Bank has ring-fenced £100m for invoice finance from its £1bn Business Expansion Fund.

It said it had taken the step to support small businesses facing invoice delays after its own research showed small firms face an average seven-week wait for invoices to be paid.

Invoice finance allows businesses to access up to 85% of an invoice’s value as soon as it is issued.

Martin Rothera, head of invoice finance at Clydesdale and Yorkshire Banks, said: “Underlining our enduring commitment to the invoice finance market, this £100m of additional funding will provide real support for many businesses.

“Late payments can put immense pressure on small businesses as cash flow dries up, leading to pressure on their ability to pay their own bills. Providing an invoice finance service which suits new and existing customers is a key part of our support for UK businesses, particularly those which are working harder than ever to compete in some very challenging economic conditions.”

He added: “From our research we know that cashflow and invoices being paid on time are still primary concerns for SMEs. Cash flow is the lifeblood of a business and invoice finance is an extremely useful tool for SME owners. It’s something that more businesses could benefit from accessing.”

The Business Expansion Fund is the bank’s initiative to support companies looking to start up, expand or switch their banking arrangements.