The question of financing can often be the difference between taking action on setting up your own business, and deciding not to go ahead with it. Certainly in recent years, financing has become somewhat of a fraught term with cash flow being a major issue and less options being made available to Small and Medium Enterprises (SMEs). Banks remain the top choice for these companies to gain finance as only a small minority seek alternative options for financing their business. It has been reported that even after finding themselves declined for finance from the banks, many SME owners still do not seek out alternative funding options. With the financial climate in Ireland beginning to take a slight turn for the better in recent months, perhaps now would be a good time to begin looking beyond the banks when you want to begin or grow your business and are in need of the financial backing or financial boost to do so.
The Strategic Banking Corporation of Ireland has recently urged SMEs to look towards alternative funding options to the banks, as this may allow them to access funding more suited to their individual needs. With the Irish economy now making a valiant attempt to recover, there are a number of new lenders emerging which offers a great deal more choice to SMEs which previously would have had very few options after being declined by the major bank lenders. Due to a newly competitive market, these lenders can often offer quite competitive rates and have the financial confidence to accept what major banks may see as being a risky investment. Another positive aspect of the arrival of these new lenders to the market is that many have the ability to deliver funds far faster than major lenders.
Many SMEs may suffer from seemingly weak financial reports when compared to larger companies, or be in the midst of a restructuring plan, which may result in them being declined by bank lenders. Perhaps these new more widely available lenders could now make all the difference for these companies which will now have more options to choose from.
Invoice financing is one such way for SMEs to avail of funding through companies such as Clancy Cashflow Solutions who welcome businesses which have been declined by larger lenders and allow borrowers to release funds tied up by their debtors in order to immediately make use of funds. Whilst some lenders create an impossible situation for borrowers wherein they may not have access to enough cash to make it until the payment of the loan, this financing option allows for swifter access to funds, sometimes even within 24 hours.
Invoice financing works by raising an invoice to your customer which is then forwarded to the funder who will allow for the almost immediate release of a portion of the requested funds to allow your business to stay running smoothly.
Should you have any financial queries or issues that you require advice on, please don’t hesitate to contact us at DCA Accountants, where we will be happy to help in any way.