Yorkshire manufacturing: Meeting the financial challenge
MANUFACTURERS are funding investment from parent companies, their balance sheets or finding alternative sources of finance.
That’s one of the conclusions to emerge from a new supplement looking at the manufacturing sector from TheBusinessDesk.com, in association with DLA Piper which has surveyed producers on their financial position.
Richard May, managing partner at DLA Piper in Sheffield, said: “Despite the common perception that banks are still not lending, the research found that businesses are doing stuff off their balance sheets and they don’t need bank finance, and that it is not holding them back.”
Some manufacturers appear to be cautious about approaching banks fearing that the inquiry could lead to a revision of their existing terms
They are also turning to alternative sources of finance such as invoice financing and export factoring.
Mark Riches, head of trade finance at Bibby Financial Services, said: “The fact that more and more business owners are looking at overseas opportunities to sustain and grow their businesses, despite
uncertain economic times at home and abroad, goes to show that there are still opportunities for the taking.
“What is important now is that these firms are fully supported by the financial services industry, which should help ensure businesses are in a position to seize new opportunities and grow.”