Have you heard about the Bank Referral Scheme? - 28th June 2019

Have you heard about the Bank Referral Scheme?

Name: Grow Funding
Address: 27A Goring Road, Goring By Sea, West Sussex, BN12 4AR, United Kingdom
Telephone: 01903660091
Price range: Competitive
Rating: 5

The Small Business, Enterprise and Employment Act 2015 created the UK government bank referral scheme. The scheme was launched in November 2016 so that the government could track businesses and their requests for business finance. The purpose of the bank referral scheme was to support SME businesses that had been turned down finance by their bank. The bank would ask permission from the SME business to pass their details onto an alternative business funding scheme. Sadly, in March 2017 the Sunday Times reported less than 24 percent of businesses were referred. According to a report by Genesis Initiative, in 2018 50% of small business owners did not look elsewhere than traditional lenders.

Without the financial investment it means that SME businesses are unable to grow and survive.

So, why are UK businesses not looking at the alternative funding market?

One could argue that UK businesses are not looking at the alternative funding market because there could be a lack of trust, knowledge or awareness. Over the last year significant investment has been placed by alternative lenders to increase the awareness through additional marketing. However, there is a consensus that some businesses think that alternative lenders have higher rates than their banks. In some cases, it has proven that the alternative lending market can be competitive and that the rates are based on the level of lending risk.

With awareness improving and trust growing for the alternative lending market additional benefit are also starting to shine through such as:

• quick loan applications, which are made easier

• funding available within 24-hours

• bad credit rating can be overcome

• bespoke lending with more flexibility for any purpose

At Grow Funding we are an impartial finance broker with expert knowledge of the alternative finance market. Before applying for finance, we offer a free consultation to advise you on which independent lender could suit your business and offering you the best rates. Feel free to get in touch on (01903) 660091

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Asset finance is a type of lending that enables you to access business assets such as equipment, machinery and vehicles without having to buy them upfront. It can also allow you to release cash from the value in assets you already own or use your existing assets as security against a business loan from an asset finance lender.

Business asset finance is typically attractive to businesses who want to put their growth plans into action but don’t necessarily have the ready cash, or business owners who would rather spread large costs over a longer period.

Short-term asset finance also enables businesses to remain competitive by making it easier for them to access the latest technology. Asset finance is a broad category that relates to valuable items in your business.

Here is one of our case studies of asset-based invoice finance –

Case Study - Feb - 2019

Invoice factoring for Essex based building company

This company had been awarded a large value contract with a London borough council to install new kitchens and bathrooms into their residential council properties. With limited funds in the bank to cover the cost of labour and materials, Grow Funding arranged a suitable Invoice factoring facility to allow the business to release cash tied up in their outstanding invoices. This means going forward at the point of them giving the invoice to the council they can factor the invoice to provide them with cash in the bank to cover their cash flow needs. An initial facility size of £165,000 was set up with view to this growing over time.

The Advantages:

• Credit insurance to protect you against bad debtors

• The funds are secured and valued against your assets

• Funds can be used for any business needs

• There is the possibility of being flexible in comparison to loans and overdrafts

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Grow Funding ltd - 70 Goring Road - Goring by sea- Worthing - West Sussex - BN12 4AB

01903 660091

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