Research results: 20% of UK SMEs have received fraudulent references by job seekers

Figures from the latest Close Brothers Business Barometer results show that one in five UK SMEs has received a fraudulent reference for a job candidate.

Of those, over half (56%) say that it has happened up to five times in the last five years alone. Worryingly,10% have received more than 10 dishonest job references in the same time period. The survey has revealed that false references are most commonly received for mid-level (51%), and entry-level (45%) positions.

Not surprisingly, the volume of fraudulent references has a correlation with the high number of employers that are unaware of the existence of websites that charge for false references (56%).

For more details from our research and for feedback from David Thomson, CEO of Close Brothers Invoice Finance, take a look at this article - and other news items - here on the Close Brothers Invoice Finance website.

Case study: "I don't know how we managed without invoice discounting"

We have recently written a case study with the help of our customer at London Toughening, a specialist manufacturer of glass products in the South of England.

Financial Controller, Maria Demetriou was hesitant about using invoice discounting as she felt it would be expensive. After 18 months with Close Brothers, Maria has told us that she didn't know how the business managed before. The overdraft facility the business had with their bank was restrictive and was holding the company back from the substantial growth that invoice finance has now allowed. Maria has recognised that the beauty of invoice discounting is that it grows with your business rather than being a static amount that may or may not be sufficient.

Please click here to go to our website and read the full case study.

If you have any questions, or are interested to know how our invoice finance products could help you or your client's business, please get in touch by calling free on 0808 252 0353.

Biggest quarter ever for asset based finance as businesses borrow a record £18.9bn

Press release from the ABFA:

• Jumps 7% in three months and 10% in a year
• Largest companies account for almost a third of all advances

The three months to June 30th 2014 was the biggest ever quarter for asset based finance, with a record £18.9 billion of funding provided to businesses, says the Asset Based Finance Association (ABFA), the body representing the asset based finance industry.

According to figures from the ABFA, the combined amount of invoice finance and asset based lending provided to businesses leapt by seven per cent in the last quarter, from £17.7 billion in March 2014, and 10 per cent in the last year, from £17.3 billion in June 2013.

The ABFA says that demand has partly been fuelled by constraints on traditional lending, but that is has also gained traction as more businesses gain an understanding of how borrowing against the value of their invoices and other assets can free up cash to invest in growth.

The ABFA points out that it is not just SMEs – typically seen as the hardest hit by constraints on traditional lending - who are making use of this facility.

Almost a third (31 per cent) of the total advanced through asset based finance in the last three months was used by companies with an annual turnover of more than £100million.

The ABFA explains that 80 per cent of asset based finance is invoice finance, in which businesses secure funding against their unpaid invoices, while the other 20 per cent represents the fast-growing area of asset based lending, in which businesses can raise money secured against a range of other assets they own, including inventory, property and machinery.

Jeff Longhurst, Chief Executive of the ABFA says:

"Asset based finance is a proven tool for growth, enabling companies to increase their funding as they grow. Asset based finance is funding record levels of new jobs and business investment."

"What's becoming increasingly clear is that asset based finance such as invoice finance in particular, is the alternative to traditional lending for SMEs that the Bank of England and the Treasury have been looking for."

"We are seeing more and more businesses of all sizes and types taking advantage of invoice finance to fuel their growth, particularly as more traditional forms of lending remain subdued. More businesses are viewing their invoices as what they are – one of their biggest assets."

"Asset based lending is fast becoming a standard part of the finance suite for bigger businesses. As the economic recovery hits its stride, having funding that automatically expands with your business is a huge bonus. The ability to increase the size of your borrowing facilities as your business grows is one of the biggest strengths of asset based finance."

"That's a big plus for many businesses, because they don't have to keep re-evaluating their funding position and proving themselves to their lenders."

Amount of asset based finance advanced to businesses hits record high…

…While traditional lending to businesses falls by more than a fifth

The full statistical release, along with historical data are available at: https://www.abfa.org.uk/members/statistics.asp

Growing concern over UK’s digital skills shortage

MORE than two fifths (43 per cent) of SMEs in the UK believe that they will need enhanced or increased digital capabilities in the next three years, in order to cope with the ever-changing business landscape.

Of that number, 77 per cent are worried about how they will successfully upskill, with many firms citing difficulties finding suitably skilled staff and the level of investment required as potential stumbling blocks.

CEO of Close Brothers Invoice Finance, David Thomson, said: “Our findings suggest that many SMEs do not feel adequately equipped for the future and that many are concerned that finding staff with the appropriate skills will be a challenge.

The figures come from the latest Close Brothers Business Barometer, a quarterly survey that seeks to canvass the opinion of SME owners and managers across the UK on a range of issues that affect their business.

Mr Thomson continued: “A recent paper published by 02, The Future Digital Skills Needs of the UK Economy*, estimates that there is a requirement for almost three quarters of a million (745,000) additional workers with digital skills to meet the rising demand from employers and fuel the UK economy during the next three years.

“With this in mind, we need to explore how the UK can be prepared to compete in a digital global economy. Perhaps it is becoming necessary for businesses to look towards the younger generation to help address the growing skills gap.”

The survey also found that, of the firms who do not believe they will have any requirement for increased digital ability, 31 per cent of those do not consider digital skills as relevant to their business.

“SMEs across the board should consider the importance of digital skills in their workforce and the value these skills can bring. With £107 billion forecast to be spent online in 2014**, it is vital that SMEs are equipped for e-commerce and have the skills required to engage customers via their website or social media sites. It is clear that additional industry support is needed to deliver digital skills education in schools and also help young people into digital roles by offering more practical work experience.

“By working hand-in-hand with the government, UK firms can help to tackle this issue and ensure that we have the skills required to compete on a global level,” added Mr Thomson.

For more information and news about Close Brothers Invoice Finance please visit www.closeinvoice.co.uk

Sources
* The Future Digital Skills Needs of the UK Economy, 2013
** IMRG Capgemini e-Retail Sales Index, 2013

UK SMEs owed more than £20k in late payments on average

TWO fifths of small businesses in the UK are adversely affected by late payments, a recent survey has revealed.

Of those businesses that have experienced problems due to late payments, over half (58%) said that it impacts on their day-to-day cash flow management, 17% said it has meant they have had to rein in necessary spending and 15% say it threatens their ability to trade.

The figures come from the latest Close Brothers Business Barometer, a quarterly survey that canvasses the opinion of business owners and managers across Great Britain and Ireland.

CEO of Close Brothers Invoice Finance, David Thomson, said: “This increasing debt burden is a worrying situation for small firms. Of the businesses we spoke to that are facing problems due to unpaid invoices, 44% say that they are owed more than £20,000.

“This is constricting their cash flow and the knock-on effect is that it prevents them from being able to pay their suppliers on time, thus creating a vicious cycle.”
Mr Thomson continued: “It’s a situation that needs to be addressed, and alternative funding methods such as invoice and asset finance present a solution.

“Invoice finance works to bridge the gap between raising an invoice and receiving payment. We are actively working with local firms to raise awareness and ensure that they have access to the guidance and funding they need to manage their cash flow and make the most of the assets they have at their disposal.”

The survey also revealed that 17% of firms in the UK spend more than ten hours a month chasing unpaid bills.

“Further to the debt burden, there is the additional cost of time spent chasing up late payments. Time is often a manager’s most precious asset so it is important to make the best use of it. Invoice finance can help mitigate the time spent chasing payments and laborious month-end reconciliations.

“I encourage small businesses, particularly those who are suffering under the pressure of late payments, to reassess the funding they have in place to make sure it’s appropriate to meet their needs,” Mr Thomson added.

For more information and news about Close Brothers Invoice Finance please visit www.closeinvoice.co.uk

Late payments - a constant thorn in the side of UK SMEs

If there is one challenge that almost all of our customers site as causing them the most stress before they come to us, it is late payments.

There has been a great deal of focus on late payments in the media recently, cited as a major contributor to holding back economic recovery. Research carried out across the industry reveals that large companies in the UK are owed £6.7 billion in unpaid invoices. Suddenly that doesn’t seem like much, however, when compared with the debt of UK SMEs who are owed nearly six times as much at £39.4 billion*.

Many of our customers have chosen factoring as a solution to this problem, where our Credit Team chases any payments. This particularly suits business owners who are not comfortable comfortable, or don't feel they get results, collecting payment themselves. For those who are comfortable with the payment collection process we recommend invoice discounting.

Whether you use invoice finance or not, these 5 top tips that were put together by our in-house experts – the people who are closest to our customers – should help you to overcome late payments and keep your business moving:

1. Agree scope of work
Clearly state your costs and payment terms on the contract and ensure your client agrees before starting work
Making sure all parties are clear and in agreement before any work goes ahead will make it far easier to chase your customer once payment is due. Proof of their agreement to your terms and conditions will make your case much stronger if they cause delays.

2. Multiple forms of payment
Be open to accepting multiple forms of payment
Not accepting certain payment methods could give your customers reason to delay paying you what you are owed. Being open to multiple forms of reimbursement – ideally including credit cards – leaves your customers no excuses! Take advantage of the fact that everyone with an Internet connection has access to free cloud systems, such as PayPal. For more information, download our free guide on how cloud computing can support your business.

3. Upfront payment
Get an upfront deposit or set up a payment scheme
This involves taking a proportion of the cost before work commences and is an effective, yet reasonable way to set boundaries for your customers. The reduced balance once the work is complete may also have a positive impact on their ability to pay.

4. Terms
Stick to your payment terms
If your clients do not pay within the time limit then it is important that you follow through with your conditions. Make sure your invoices clearly state what will happen when payment is delayed, whether it means charging interest, reporting them to the relevant parties or taking legal action.

5. Prompt Payment Code (PPC)
Sign up to the Prompt Payment Code (PPC)
The Prompt Payment Code was set up by the Department for Business Innovation and Skills and encourages best practice between organisations and their suppliers. The code enables businesses to build stronger relationships with their customers and to be confident that they will be paid. Independent analysis by Experian suggests that current signatories to the Code represent over 60% of total UK supply chain value, so the Code is making a difference**.


*Research by BACS, July 2014 http://www.bacs.co.uk/Bacs/DocumentLibrary/UK_companies_face_a_late_payment_burden_of_%C2%A346.1_billion.pdf
**Matthew Hancock MP, Minister of State for Skills and Enterprise http://www.promptpaymentcode.org.uk/

Local councils lag behind Government guidance on supplier payment

Some councils are still making contractors wait 40+ days for payment

According to research by the Asset Based Finance Association (ABFA), local councils are lagging behind Central Government guidance on prompt payment of suppliers.

The results of the research reveal that local councils are currently paying their suppliers in an average of 17 days while in July 2010, Central Government departments were ordered to pay 80% of invoices within five days. In fact, some local councils are even failing to make payments to their suppliers within the 30-day payment period mandated by the Late Payment of Commercial Debt Act, which came into force in March 2013. The ABFA adds that the average wait for payment is still in excess of 40 days for some local authorities. Jeff Longhurst, Chief Executive of the ABFA, says: “Public sector organisations should be acting as role models for the private sector in paying their invoices as promptly as possible.” “Central Government bodies have performed well in hitting their prompt payment targets – many now pay more than 90% of their invoices within five days. The current average of 17 days for local councils leaves a lot of room for improvement.” “Those that fail to pay within 30 days risk damaging businesses in their local areas.”

SME subcontractors hit twice by waits for payment

SMEs are often hit twice by waits for payment when working on subcontracted projects for local authorities, as they have to wait for both the council and the main contractor to pass on payment. Research carried out by the ABFA found that SMEs are waiting 71 days on average to receive payment. Says Jeff Longhurst: “Smaller businesses brought in as subcontractors on projects for local councils are particularly vulnerable to delays in payment. As the third link in the payment chain, they often end up waiting months for their invoices to be settled.” “Local authorities need to make sure they are adding as little as possible to that wait by paying as promptly as possible and also in persuading their main contractors to pay their sub contractors quickly.”

Invoice finance can help to support cash flow for SMEs

As supported by the ABFA, invoice finance can be a vital component to assist cash flow for small businesses struggling to secure prompt payment as it gives businesses up-front advance on their unpaid invoices, regardless of the time customers take to pay. According to Jeff Longhurst, “with the economy having recovered back to pre-recession levels, there are now more opportunities for SMEs to grow, whether through purchasing machinery, expanding the workforce, taking on new customers or investing in R&D.” “A huge number of SMEs rely on outsourced work from local government bodies, but there is no reason why slow payment should become a roadblock to growth for them.” “Small businesses need to be aware of all the tools in their funding kit, including options like borrowing against their unpaid invoices, which are often their biggest asset.”


* Year end March 31

iGraphic

Every quarter we carry out a survey which canvasses the opinion of SME owners and senior management throughout the UK and Ireland on a range of issues affecting their business.


This month we have brought the results of our latest Business Barometer survey to life via our informative quick-view iGraphic called "How are SMEs feeling about the economy?" 
You can download the iGraphic by clicking on the image below:

5 top tips for SMEs dealing with growth demands

We at Close Brothers Invoice Finance help small and medium-size enterprises (SMEs) everyday to access vital working capital and support their growth.

SMEs are the driving force of the UK economy and make up a large proportion of our customer base. For that reason, we thought an article we found in Economia by Will Butler-Adams, Managing Director of Brompton Bicycle is a great read for small business owners looking for advice.

The article offers Will's 5 top tips for dealing with growth demands as a small British business.
See the full article here for tips on:

• Managing your growth step by step
• Not being afraid to ask for help
• Surrounding yourself with the right people
• Sticking to your roots

If you are a business owner with annual turnover of over £250,000 and are looking for support with cash flow and business growth, Close Brothers Invoice Finance can help.

Visit www.closeinvoice.co.uk for more information, or call one of our expert advisers free on 0808 252 0353 for a no obligations chat.

Just 16% of SME owners in the UK prefer face-to-face meetings

The results of the latest Close Brothers Business Barometer survey are in, revealing that only 16% of small business owners prefer face-to-face meetings with clients, suppliers and other contacts because of time pressures.

Half said they preferred to communicate via email and a fifth opted for talking over the phone, suggesting that these options are more time and cost-efficient.

Read the full article on StartUps here: Close Brothers Invoice Finance survey reveals businesses are losing personal touch

Case study - Asset Based Lending

Ash & Lacy is a leading manufacturer and distributor of metal building envelope systems and ancillary products. The business, which has an annual turnover of £24 million, has three locations nationwide and is headquartered in West Bromwich.

Challenge 
Following their acquisition from The Hill & Smith Group, Ash & Lacy has gone through a period of investment in enhanced manufacturing processes, including bringing previously sub-contracted processes in-house. Subsequently, the business sought to expand rapidly into new product areas. Jonathan Evans, Chief Executive Officer at Ash & Lacy, called upon the services of Cattaneo LLP, an independent corporate finance advisory practice, for advice on suitable solutions to fund the continued development of the organisation.

Solution
Cattaneo LLP introduced the Ash & Lacy team to Keith Rose, Senior Sales Director at Close Brothers Invoice Finance. Further to a number of discussions to understand the requirement in more detail, Keith worked with colleagues across Close Brothers to put together a £7 million asset based lending (ABL) solution. This consisted of online invoice discounting using IDeal™, stock finance and also an asset finance package to repay existing acquisition debt whilst providing additional headroom for further investment.

Result
This bespoke funding package will provide the business with enhanced financial flexibility as it continues its capital investment programme that aims to improve efficiency, grow sales and create new jobs. Andrew Waterhouse, Finance Director for Ash & Lacy, along with his finance team, have been particularly impressed with the IDeal™ product because of its ease of use, flexibility and “real time” capabilities.

Jonathan Evans commented: “We are pleased to have selected a partner in Close Brothers. They have the appetite to invest in our sector and through listening to us and making an effort to understand our business plan, they were able to provide facilities that will allow us to make investment decisions that will have an immediate and positive impact on the growth of our business.”

Keith Rose, Senior Sales Director at Close Brothers Invoice Finance in Birmingham, said: “We are delighted to have this opportunity to work with Ash & Lacy, a brand name that is synonymous with the Midlands Region. We were extremely impressed with the company’s market position, manufacturing quality and importantly, with their highly experienced and motivated management team that knows exactly where they are taking the business.”

Martyn Pilley of Cattaneo LLP added: “The construction sector has been slow to emerge from recession and remains a challenging environment for many banks. However, Ash & Lacy has demonstrated the results that can be obtained from a carefully targeted investment which appealed strongly to Close Brothers Invoice Finance who have tailored a financial package that will meet the needs of this forward looking business.”

Don’t let big businesses call the shots

The Federation of Small Businesses (FSB) this week revealed that from its member survey of 8,000+ companies, 51% of SMEs providing goods or services to larger private sector businesses were paid late in the last 12 months.

The FSB's research shows that late payments to SMEs can result in reduced profitability (34%), paying their own suppliers late (32%) and restricting their business growth (29%).

In December 2008, the Prompt Payment Code (PPC) was set up to encourage a culture of large companies paying smaller suppliers on time and the FSB is now calling on the Government to strengthen the code once again.

Multiple online publications, including Real Business and growthbusiness.co.uk, have focused on the issues that SMEs are facing as a result of late payments by big businesses this week - you can read more here:

Don't let big businesses call the shots - growthbusiness.co.uk
Half of SMEs are paid late by large firms - Real Business

If you are experiencing cash flow problems as a result of late invoice payments, visit the Close Brothers Invoice Finance website, or give us a call on 0808 252 0353 to see how we could help.

Bad debt protection helps manufacturing firm

Modified Solutions, a building fabric maintenance company, is benefitting from bad debt protection as part of the online invoice discounting finance it uses to fund the business.

Modified Solutions raises invoices and then logs them on the Close Brothers Invoice Finance online system, IDeal™. They then get up to 95% of the value of those invoices paid immediately instead of having to wait for its customers to pay.

The firm also uses the 100% bad debt protection service so that they are protected if any of their clients go bust. Having had the experience of bad debts in the past, and knowing the volatility of the building industry, bad debt protection is a vital precaution for Modified Solutions’ business.

Invoice financing gives Modified Solutions funding that they couldn’t get from traditional sources. It only took a matter of days to set up and they’ve found it more cost-effective than the overdraft facility they had originally relied upon.

Watch the video

How to access bad debt protection

Running a business can be intensely stressful, but imagine how much better you would feel if you had 100% bad debt protection.

Knowing that you will get paid in full for the invoices you raise gives you confidence in your financial forecasting and budgeting and means that you will never have to face that terrible prospect of a bad debt that directly impacts your bottom line.

How does 100% bad debt protection work?
Close Brothers Invoice Finance offers clients the opportunity to take 100% bad debt protection as an option that complements online invoice discounting or invoice factoring.

It offers a day-to-day credit management service, helping you to avoid the prospect of doing business with potentially unsound clients and guaranteeing payment on any credit-approved invoice.

Clients who use the bad debt protection find that it can entirely change their outlook. Having professional credit support means they are much less likely to be exposed to customers who present a credit risk or have a history of failure. Knowing that your business is based on a solid sales ledger is incredibly positive. And of course, should a customer go under, knowing that what you have invoiced to date will be recovered is a great relief.

Many bad debt protection schemes only cover up to 90% of a firm’s exposure. Close Brothers Invoice Finance provides up to 100% bad debt protection. To find out more, take a look at our 100% bad debt protection service or call for a chat on 0808 252 0353.

SMEs uneasy about rising energy prices

The Guardian have gathered some key pointers from a panel of experts around how SMEs can boost their efficiency. The article discusses subjects such as the pros and cons of remote working and outsourcing of "non-core admin elements".

The Guardian's report also gives tips around energy saving - a particularly timely subject following further price increases from the "Big 6" energy companies towards the end of last year. Results from the Close Brothers Business Barometer* reveal that SMEs are particularly uneasy about rising energy prices, with 88% of businesses in the print and packaging sector of the opinion that energy companies are taking advantage of them in terms of rising prices. 

Read the full article here.


*The Close Brothers Business Barometer is conducted on a quarterly basis. It canvasses the opinion of SME owners and senior management throughout the UK on a range of issues affecting their business.

Flexibility in funding management buyouts

When it comes to management buyouts (MBOs), there are often numerous stakeholders involved, including multiple advisors and shareholder groups, as well as the parties directly negotiating the transfer of ownership.

The key to closing a successful deal with so many people and so many differing interests at stake is to have flexibility in how you raise finance and value assets.

Close Brothers Invoice Finance is an independent firm with deep experience in management buyouts across multiple sectors throughout the UK and Ireland. We know how to work with multiple stakeholders to create sustainable finance deals to fund MBOs.

We realise that it’s essential that the finance deal doesn't leave the new team with a funding liability that could restrict growth of the business. At the same time, we recognise that the outgoing owner will usually expect a significant cash payment as part of any deal.

Using a blend of invoice finance and asset based lending, we can often structure an acceptable deal that traditional banks simply can’t broker, because they don’t have the flexibility to change their terms to meet specific needs of each individual business.

If you’ve been dreaming of an MBO but are uncertain of how you could finance it, why not explore the options with our experienced advisors. Simply call our expert team, in complete confidence, on 0808 252 0353.

Enabling management buyouts with invoice finance and ABL

As firms in the UK and Ireland begin to feel confidence returning to their markets, the appetite for management buyouts (MBOs) is growing.

The big challenge for many potential management buyouts is funding the investment without compromising the business with loans or finance deals it may struggle to cope with once the new management is in place.

One flexible, fast solution is to use a blended mix of invoice finance and asset based lending (ABL) to raise the cash required from the business. This will typically involve invoice discounting or invoice factoring, helping to raise cash from outstanding invoices. This may then be backed up with an ABL facility based on the firm’s property, stock, plant and machinery or commercial vehicles.

Management teams are often surprised at the level of cash this approach can raise. With one client in the food wholesaling business, we managed to finance over £11m, with ABL raised against the level of their stock in addition to invoice discounting.

The great benefit of this approach is that it also provides a flexible line of credit after the MBO. Unlike an overdraft or bank loan, which typically has fixed rates and limits, invoice finance and ABL can grow with the business, helping to fund the ambitious plans of the new management team.

To find out more about how invoice finance and asset based lending can successfully fund management buyouts, take a look at the management buyout pages on our website.

Invoice factoring for expansion – a case study

Invoice factoring can help all kinds of businesses to improve cash flow and remove the stress of collecting monies owed from clients.

One of our clients, The Target Group, is an established recruitment company in the south east of England, and has used invoice factoring to help expand the business.

Reg Roberts began the business in 1991, sourcing temporary staff of all types, from manual workers to company Directors. He initially funded the business on a bank overdraft, but he grew so quickly that the bank stopped funding, worried that he was overtrading.

That’s when Reg turned to invoice factoring. He realised that invoice factoring would give him the significant cash injection that could help fund his ambitious acquisition programme. But more than that, he knew that his facility would grow as the business expanded, so the more successful his business, the more cash he could have available to reinvest.

Over the next 15 years, Reg grew the business from £0.5 million to £4 million. He says that he has always found the service highly efficient, accurate and personable.

Reg appreciates the professional support he has enjoyed over the years and tells us. “I have always been able to extend the credit limit when I’ve needed to finance the business.”

Watch the video

What value could you release with invoice factoring?

Invoice factoring is a fast, efficient way to improve your cash flow while removing the stress of collecting late payments from customers.

How does it work?
With invoice factoring, just like invoice discounting, you get up to 90% of the value of each invoice the instant you raise them. But with invoice factoring you also get access to a professional credit control team who will recover the monies owed by your customers on your behalf, giving you the full amount less a fee once the customer eventually pays. 

What are the benefits?
Clients who use invoice factoring find numerous benefits: lower credit control overheads, professional management of debtors, tighter control over finances, more accurate budgeting and forecasting, less worry about late payments. But the biggest benefit for most businesses is the immediate and significant cash flow injection.

How much cash could you release with invoice factoring?
So the big question is how much cash could you realise using invoice factoring? If you know the number of invoices you raise each month, the average value of each invoice and the average time it takes your customers to pay you can quite quickly provide an indication.

For example, if a firm with a £1.2 million turnover averaged 40 invoices a month with a value of £2,500 each and debtor days of 60 days, invoice financing could release up to £187,398 for the firm to invest into the business.

For a quick indication of how much invoice factoring could release into your cash flow, use the online calculator at Close Brothers Invoice Finance.

Asset Based Lending (ABL) explained

With traditional sources of funding being squeezed right across the UK and Ireland, asset based lending (ABL) has emerged as a powerful source of finance for many companies. But what is ABL and how does it work?

Put simply, asset based lending is a fast, simple and tax efficient way to raise money against the value of existing assets owned by the business. Many people assume this means that you have to own your own factories or buildings, but ABL can actually be advanced on a rich mix of assets that can include:

· Stock – perfect for wholesale businesses or resellers, ABL can help you to raise cash based on the stockholding you have on a month-to-month basis. This effectively enables you to leverage the value tied up in stock and to enjoy a return months before you actually recoup the sale value.

· Plant and machinery – a great way to get essential investments working harder for your business. ABL has long been popular with printing firms and manufacturing and processing companies who have to invest huge sums in the latest equipment to maintain a competitive edge.

· Commercial vehicles – many service businesses - from IT and distribution to refuse and haulage - have significant capital tied up in vehicle fleets. A cost-efficient ABL deal can make a vital contribution direct to the bottom line.

· Property – any company that owns its own premises, be it office buildings, factories or warehousing, can look to ABL to generate immediate cash to fund growth or relieve cash flow challenges.

Is asset based finance the answer to you funding needs? 

Of course each asset based lending deal is tailored to the precise needs of your business. Terms can be flexible and ABL deals can be tied in with other forms of invoice finance to generate cash quickly and efficiently.

If you would like to know more about how asset based lending could work for your business, visit the Close Brothers Invoice Finance website.