Raising awareness of ‘alternative’ forms of business finance by David Postings


Many SMEs we speak to tell us that traditional bank lending is still restricted despite positive projections for the economy and announcements of recent recovery and growth. Bibby Financial Services is a member of the Asset Based Finance Association (ABFA) and recent figures published by the trade body show that the supply of this form of finance to UK businesses hit a record high in the last 12 months.

An average of £17.5 billion in asset based funding has been in use at any one time by businesses over the last year.  This is an incredible achievement which signifies that the ‘alternative funding’ tag is outdated. Instead, it is now seen as a vital and sustainable source of funding for over 40,000 businesses in the UK.

But aside from loans, credit cards and overdrafts, many businesses aren’t aware of different forms of finance so it’s critical that funders continue to raise awareness of the options available.

We take this responsibility seriously and as part of the process of spreading the word, in May, we became the first independent invoice finance provider to advertise on national television for 20 years with our ‘red cushion’ advert, which aired across the Sky network.

Extending our reach

I have been delighted with the response to the TV campaign but it doesn’t stop there. We’re continuing to extend our reach in publicising the benefits of invoice financing as a real benefit to UK business owners and subsequently – the economy.

A recent article in The Daily Telegraph featured research from Bibby Financial Services and showed that nearly half of small and medium sized businesses are currently using either their own savings or money borrowed from friends or family, to finance their business.

There are obvious pitfalls to this approach and we would urge business owners to spread their gaze when it comes to considering the financial options available to them.

Raising awareness

In its Queen’s Speech in June, the Government said it was pro-business and announced plans to improve the flow of finance to SMEs by introducing measures for banks to refer customers – who do not meet their lending criteria – to ‘alternative’ funders.

I welcome this move but clients must remain at the heart of the process to ensure that they have access to suitable funding, when they need it.

The consultation period for the Small Business, Enterprise and Employment Bill has now ended but I’m sure we’ll hear more about these plans over the coming months, which I will endeavor to cover on this blog.

Thanks again for reading and feel free to contact my team at Bibby Financial Services for more information about the types of funding we offer.

David Postings

UK CEO, Bibby Financial Services

About David Postings

David Postings is the UK Chief Executive Officer for Bibby Financial Services following his appointment in April 2012. David is an experienced senior executive with over 35 years’ experience in financial services. David has extensive knowledge of the commercial finance landscape.

You can read more about David Postings and his position at Bibby Financial Services in the About Me Section.

About Bibby Financial Services

Bibby Financial Services is the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding solutions to 7,000 businesses, handling annual client turnover of £4.9 billion and advancing in the region of £388 million.

For more information about Bibby Financial Services and their comprehensive range of specialist invoice finance solutions please visit www.BibbyFinancialServices.com.