Tandem Invoice Finance

A happy construction company

Malcolm — Tue, 24 Jan 2012 14:08:07 +0000

I would to thank Tandem Invoice Finance for your prompt and efficient selective invoice finance service which is and is being extremely helpful to our business. It is a pleasure to finally find someone who actually does what they say on the day they say, simple proceedures, very proffectional and a pleasure to do business with you.

Thank you.

Doubts over loan guarantee scheme put spotlight on invoice finance

JohnnyMorgan — Tue, 13 Dec 2011 11:00:29 +0000

The Chancellor’s SME loan guarantee scheme is a positive development for small business finance, but it is already facing criticism that it doesn’t go far enough in terms of improving SME credit. These doubts have put the spotlight back on alternative SME finance, including invoice finance.
The government has pledged to underwrite £40 billion of bank funding for SME lending, a move that it hopes will encourage high-street lenders, such as the state-owned Royal Bank of Scotland and Lloyds Banking Group, to improve access to SME credit.
But will this latest plan work? Some banks are making the right noises about SME lending but the threat of rising bank credit costs casts serious doubts over just how much credit banks are going to offer. In addition, there are questions as to whether the cuts to the cost of SME loans go deep enough and to the coverage of the scheme, which some believe to be skewed in favour of small businesses at the higher end of the earnings spectrum.
The government SME loan guarantee scheme is likely to help but, at the same time, it doesn’t seem to be the knight in shining armour that the small business sector was hoping for. So, what’s the answer? The Federation of Small Businesses has called on the government to free up alternative sources of SME finance so that small businesses can bypass mainstream SME lenders.
An increasingly popular form of alternative SME finance is selective invoice finance. Flexible and without long-term commitments, it allows small businesses quick access to capital and, importantly, can be used in conjunction with traditional business lending facilities.
If 2011 has proven anything in terms of the problems surrounding SME lending, it is that there is no easy answer. Perhaps alternative small business finance products deserve as much attention as the mainstream ones.
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.

Selective invoice finance to help drive SME growth in 2012?

JohnnyMorgan — Tue, 06 Dec 2011 11:00:26 +0000

Although the details of George Osbourne’s autumn statement and national SME loan guarantee scheme are still being debated, small businesses can feel more positive about their position as the year draws to a close. There is optimism for 2012 but a question mark remains over bank SME lending ability. So, will invoice finance play a major role in SME business finance next year?
After continued campaigning for better SME lending facilities in 2011, small businesses have reason to be cheerful and there is a sense of optimism for 2012. According to a new survey featured by the British Chambers of Commerce, Britain’s small businesses are optimistic that there will an upturn in business conditions in 2012. Nearly two thirds of small businesses surveyed expect revenues to increase next year, with winning new business a priority.
Such development will be warmly welcomed and, in order to accomplish this growth and build upon it, small business funding will be crucial. So, where will it come from? The Chancellor’s SME loan scheme may see banks giving more, but this is far from guaranteed, in particularly as it has emerged that banks face rising financing costs, which may inhibit their ability to lend.
So, what is the solution for SME lending facilities? Given the landscape, it seems likely that alternative SME lending products will play an increasingly significant role in the small business finance sector in 2012. Invoice finance is likely to be at the forefront of this development.
The use of invoice finance has grown markedly in 2011, as these figures from the Asset Based Finance Association show. Driving this growth is selective invoice finance, a flexible invoice finance product that allows companies to quickly access capital locked in invoices on an invoice-by-invoice basis without the need for long-term commitments.
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.

Osbourne prepares major big bank SME lending boost for 2012

JohnnyMorgan — Tue, 29 Nov 2011 11:00:50 +0000

The government has been under constant pressure this year to improve SME lending facilities and with the year near its end, the chancellor has announced a £20 billion national loan guarantee scheme for SMEs. So, has Christmas come early for small businesses in the UK?
Due for launch in January 2012, the two-year scheme will see the government underwrite SME borrowing by the big banks, a move it envisages will cut the cost of borrowing for small businesses by up to 20% and enable the high-street lenders to offer cheaper SME loans.
The news has been largely welcomed by the SME sector, which is likely to see the move as a triumph after a year of sustained campaigning for improved SME lending facilities. It has repeatedly argued that big bank SME lending terms are prohibitive and the new package of measures will certainly put to the test the argument presented by the banks that a lack of demand is behind subdued small business lending levels.
The SME credit scheme, which also includes proposals to create a bond market for the small business lending sector and a public/private sector investment fund, also puts a question mark against the future of Project Merlin, or at least its annual small business lending targets.
Another point worth making is that the small business lending landscape has changed markedly over the last 12 months. Alternative SME finance has grown notably, in particular invoice finance and factoring, led by new SME credit facilities such as selective invoice finance.
So, is the new SME credit scheme an early Christmas present for small businesses? Potentially. But, looking ahead, SME sector growth may be underpinned by two pillars – big bank small business lending and alternative SME lending products such as selective invoice finance.
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.

Greater export activity key to SME sector growth?

JohnnyMorgan — Tue, 22 Nov 2011 11:00:12 +0000

While the imminent arrival of Virgin Money on the high street following its acquisition of Northern Rock raises hopes of greater competition in the business banking sector, the spotlight has also fallen on export activity and how government investment in this area could help boost SME finances.
Discussion on how to stimulate SME sector growth and improve small business credit has encompassed a variety of subjects in recent months, including R&D tax reform, changes to bank lending regulations, selective invoice finance and a new SME credit scheme, and another proposal can now be added to the list: a £20 billion government investment in export strategy.
The call for such spending comes from the CBI, which has released a report in conjunction with Ernst & Young that says the state should help ensure that 25% of SMEs are selling goods and services overseas. At present, the level stands at 20% and the 5% rise would bring the UK in line with the EU average.
The CBI argues that UK SMEs should be doing more trade with the BRIC (Brazil, Russia, India and China) nations and that as part of the investment in SME export strategy, the availability of export credit finance should be increased.
Whether or not the CBI gets its wish remains to be seen, but as the number of proposals rises and as invoice finance and factoring become increasingly popular, it is clear that improving SME lending facilities will continue to be a headline topic.

SME finance boost from VAT and bank regulatory reform?

JohnnyMorgan — Tue, 15 Nov 2011 11:00:04 +0000

In terms of financial regulatory reform, all eyes are currently focused on efforts to stabilise the Eurozone, but closer to home, two pieces of legislative news, one directly linked to SME lending, have given small companies a reason to be cheerful.
While debate rages over the validity of his proposed scheme, the fact that the new executive director of the Bank of England, Andrew Haldane, has acknowledged that small business lending needs to improve should be welcomed by the SME sector. He has proposed that rules governing how banks calculate risk weightings should be relaxed, facilitating greater SME lending.
He hopes that such a move would end the standoff between the big banks and small businesses over SME credit. The banks claim that SME lending is falling as demand is dropping, while SMEs claim that prohibitive bank lending terms are behind the decline and are encouraging them to seek alternative funding, such as invoice finance and factoring.
Another piece of regulatory news that has been welcomed by small businesses is the government’s decision to close the Channel Islands VAT loophole. The SME sector had long been campaigning for a change to this legislation on the grounds that the advantage enjoyed by Channel Island companies had driven many traders in CDs, DVDs and books based on the UK mainland out of business.
The change in legislation, which comes into force from 1 April 2012, has wiped millions of pounds off the value of Channel Island companies, such as Play.com. Despite sales of over £280 million in 2005, the business was sold in September 2011, in anticipation of the reform, for just £25 million. The SME sector hopes a more level playing field will help stimulate economic growth.
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.

Does R&D tax reform hold key to better SME finances?

JohnnyMorgan — Tue, 08 Nov 2011 11:00:29 +0000

How to improve the state of SME finance? A new small business credit scheme? Intellectual property law reform? More competition in the traditional business lending sector? Invoice finance? This week, R&D taxes are under the spotlight, with major manufacturers pushing for a revamp.
Although the government increased the incentives on offer to SMEs regards R&D tax credits in the 2011 Budget – small company R&D tax credit rose to 200% in May and will rise to 225% in 2012 – the industry feels that more needs to be done in order to stimulate growth and create jobs. A group of major manufacturers, citing a new PricewaterhouseCoopers report, claims that an overhaul of the R&D tax relief system could increase national R&D spending by £390m and create nearly 8,000 jobs.
This growth would certainly be a boost – maintaining cash flow is a major issue for SMEs at present – and for those either directly or indirectly involved in R&D activity, the generation of new revenue and capital would be welcome. However, it is clear that such reform would have to form part of a larger plan for the problem of small company credit to be properly addressed.
Strong growth in the use of invoice finance and factoring products, such as selective invoice finance, which allows companies to access capital in invoices on an invoice-by-invoice basis, underlines a growing trend for non-traditional SME lending facilities.
The next phase of the Chancellor’s business finance proposal is due soon and it will be interesting to see if R&D tax system reform is part of his development plan. At present, the government is indicating that such change is not a consideration for the short term, but with the pressure to help small businesses gain greater access to credit refusing to abate, it could be forced to add some more weight to its actions.
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.

Clegg growth fund a boost but do SMEs need more?

JohnnyMorgan — Tue, 01 Nov 2011 11:00:56 +0000

Deputy Prime Minister Nick Clegg has announced a £950 million investment in regional business that he envisages will help have a “snowball effect” and create growth. The move is a welcome one for the 119 businesses and partnerships involved but is it enough? Do small businesses need more?
The government has been fighting growing criticism that it isn’t working hard enough to improve SME finance services and while the second tranche of regional growth investment shows activity – Clegg believes the injection will secure over 300,000 jobs – the move does little to suggest that it is any nearer to achieving the improvement in SME credit services that is being called for.
Interestingly, Emma Jones, an ambassador for the StartUp Britain campaign has recently spoken out against government policy, telling politicians to stop associating jobs with growth. She says the SME sector is a lot more nuanced than job statistics, with a growing use of outsourcing a key trend, a sentiment that suggests the government needs to take another look at its SME finance strategy.
Regardless, it is clear that small businesses are increasingly looking for alternatives to traditional bank lending services. Asset-based lending, including select invoice finance, is one format that is growing in popularity and this trend is not just occurring in the UK. Recent figures from the US Commercial Finance Association show a marked increase in the use of asset-based finance, up by US$2.6 billion in 2010 compared with 2009.
While the new investment is a boost, there is the suggestion that government business finance thinking needs to be more targeted. After this move, what is left in the pot for the Chancellor’s small business credit scheme?
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.

Mid-size business investment key to SME growth?

JohnnyMorgan — Tue, 25 Oct 2011 10:00:44 +0000

The Chancellor’s small business credit scheme continues to make headlines. The Confederation of British Industry (CBI) has called on George Osbourne to include greater investment in mid-sized companies as a means of stimulating activity throughout the business sector.
Among its requests, the CBI wants it to be easier for large companies to invest in mid-sized ones and a restructuring of entrepreneurs’ relief to encourage longer-term investment. The aim is to create a strong backbone of medium-sized companies that would help nurture growth across the business spectrum, including the SME sector.
Whether the government heeds this call remains to be seen, as it may want to have a more immediate impact on SME finance. Interestingly, Andrew Tyrie, the chairman of the Treasury Select Committee and MP for Chichester, has called on the government to give the banks a break and relax new liquidity rules, claiming that doing so would help boost business lending. George Obsourne certainly has a lot to consider in terms of how to improve big bank business lending facilities in the second phase of his growth review.
One area of interest is likely to be non-bank SME lending, which has grown markedly in recent years. Invoice finance has been part of this non-bank business finance growth, led by flexible finance products such as selective invoice finance and confidential invoice discounting. While the Chancellor is likely to focus on traditional channels, the continued development of the non-bank lending industry would appear to be just as important.
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.

Calls grow for SME lending action

JohnnyMorgan — Tue, 18 Oct 2011 10:00:24 +0000

Another week, another call for better business lending facilities in the UK. Pressure is growing on the state to do more to help boost SME finance after the EEF industry association entered the debate. What can it do? Perhaps successful British food company Higgidy should serve as an example?
The EEF, the manufacturers’ organisation for UK manufacturing companies, has called on the Chancellor to do more to stimulate business growth. The organisation has outlined a series of measures, including moves to boost competition in business banking, which it believes can turn around plummeting business confidence.
EEF’s business banking proposals appear to revolve largely around an enhanced sell of the Lloyds TSB branches and making it easier for dissatisfied customers to use alternative services. How this call fits in with the Chancellor’s recently announced plans to boost small business lending, which have been criticised by some, remains to be seen, but it will be interesting to hear the second phase of his review.
A sector that is already creating more competition in business banking is invoice finance. Shining a greater spotlight on this marketplace, in particular selective invoice finance, which is driving industry growth, would benefit small businesses in the UK.
One company that is benefiting from this service is British food manufacturer Higgidy. Famous for its range of traditional pies, the company has been helped by access to invoice discounting, according to a recent article in the Daily Telegraph. This small business finance product has helped it to maintain cash flow and overcome the difficulties caused by slow payers.
To find out more about Tandem Invoice Finance services, contact us on 0845 618 8515 or info@tandemuk.com.