In the launch of its guide to alternative sources of finance, titled ‘Ripe for the Picking’, the CBI shed light on research predicting that mid-sized enterprises experiencing high growth may be worth an extra £20bn to our economy by the year 2020.

This comes after a report from GE Capital, which showed that SMEs in the UK had plans to spend around £50bn in the next year – but must have access to the most suitable sources of funding in order to meet and surpass their goals.

While the UK’s banks account for around 80 per cent of the finance going to businesses experiencing growth, an increasing number of companies are coming to acknowledge the advantages offered by alternative finance, such as invoice discounting.

The chief policy director at CBI, Katja Hall, called SMEs the UK economy’s “backbone” and said it’s essential that they are able to access the funding needed to create new jobs and grow.

Vince Cable, the business secretary, said:

“Britain’s businesses cannot grow, export and innovate without proper access to bank credit. But they also need alternatives when looking for finance, as a traditional bank loan might not always be the answer.”

Invoice discounting companies are popular because they allow a business to borrow based on the value of its invoices – typically around 85 per cent of that value. However, with so many options open to businesses, it can be hard identifying the most suitable lenders. An independent invoice discounting broker will be familiar with a host of lenders, and will be able to provide its clients with impartial advice and quick access to the finances required. Get in touch today with a reputable broker and unlock your business’s potential.

Carried out by IFF Research, the report said that little exists to suggest the Government’s various lending schemes – including Funding for Lending, Project Merlin and its new Business Bank – have been successful. It went on to point out that, as a result, around a third of the SMEs operating in the UK – about 1.6 million – will have to look to alternative sources of funding in order to unlock growth.

In the report, 34% of SME owners confirmed their businesses will require a boost in funds at some point in 2013 if they are to grow.

Although the UK recently – and albeit, narrowly – avoided falling into a triple-dip recession, many firms across the country are still finding it difficult to access some of the more traditional forms of finance.

As a result, alternative forms of finance, such as invoice discounting, are proving to be a viable way of expanding horizons and unlocking growth.

Lord Young, enterprise adviser to the prime minister, recently led a call for a review into lifting the current age cap on access to taxpayer-funded loans.

So far, the Government’s schemes have been criticised by SME owners and lenders alike.

The CEO of one lending firm said it’s essential for SMEs to be able to access the funds they need without having to trudge through a drawn out, convoluted process.

Simplicity is definitely important. With so many commercial finance options open to entrepreneurs, it can sometimes get confusing. This is where the services of an independent broker come in. Get in touch with an independent broker today; professionals are able to provide advice on the most viable financial options, presenting the routes that best suit a business’s circumstances.

Undertaken by Hydrogen, a global recruitment specialist, the research suggests that the UK is rapidly becoming a favourite location for professionals – particularly those working in technology.

The report, titled Global Professionals on the Move 2013, collected the opinions of 2,000 individuals from 90 countries. It was found that, despite economic uncertainty, tighter controls on immigration and its famously annoying weather, the UK continues to attract professionals from all over the world. One reason put forward is the fact that the UK has established itself as the world’s second tech hub.

Dan Fox, who is Hydrogen’s MD of Technology practice, said that although the US remains the world’s most dominant force, the UK has made considerable progress. He pointed out that while the US has both San Francisco and Silicon Valley, the UK is home to a number of noteworthy tech firms – many of which have set up base near London’s Silicon Roundabout.

The report also analysed the attitudes, priorities and experience of the professionals when it comes to working overseas. The UK likewise came in second place for both life sciences and law.

However, it has been suggested that many professionals are failing to acknowledge the changing face of the global economy – since the top preferences of the respondents pointed almost exclusively to economies in the developed world, paying little attention to some of the world’s most promising emerging markets.

In the UK, businesses across many sectors are unlocking growth and making their respective industries more lucrative options for young professionals. However, businesses are still finding it difficult to access the funds that will allow them to take on new contracts, hire staff and increase output. Invoice discounting is one popular solution. Get in touch with a broker today to find out more.

According to the most recent statistics from the Lloyds TSB North West Purchasing Managers’ Index (PMI), services companies reported greater activity while manufacturers reported a drop in output. This meant that, overall, the private sector’s rate of growth remained somewhat negligible.

New work increased across the service sector but dropped for goods producers. Some companies reported having to cut back on staffing levels even more in April.

On the upside, the North West Business Activity Index – which is adjusted seasonally and provides figures that combine the overall output for the North West’s services and manufacturing output – was placed at 50.6 last month, up from March’s 50.4.

This increase in output was less pronounced than the average for the UK’s economy, which sat at 52.4.

The North West services companies that reported improved levels of inbound new work attributed their success, in part, to drives in marketing and a stronger demand from both export and UK-based clients.

While expansion was only marginal, the figures were the most positive since October last year.

Paul Smith, who is the North West area director for Lloyds TSB, said:

“Business activity growth in the private sector across the North West remained weak during April.

“While services firms saw another increase in business activity, manufacturers reported lower production levels.

“Encouragingly, overall demand picked up during the last month, which if sustained could lead to stronger increases in business activity in the coming months.”

Many businesses – not just in the North West but across the UK – are turning to alternative sources of commercial finance, as traditional forms of lending prove increasingly difficult to attain. Call an independent invoice finance broker today, for a variety of solutions to improve cashflow and achieve growth.

Set for the Arena and Convention Centre in Liverpool, over 1,000 delegates are expected to be at the festival. A series of discussions and speeches will be held that shed light on the best strategies for businesses to grow.

Some of the highlights expected at Accelerate 2013 include the founder of AKQA, Ajaz Ahmed, and enterprise advisor to the Prime Minister, Lord Young. Ahmed will look at the impact that the digital age has had on the UK, while Young will lead a session on government backing for fast-growing businesses.

Other big names at the event include former panellist from hit TV show Dragons’ Den Doug Richard, who is also the founder of School for Startups. Alongside Dr Shailendra Vyakarnam of the Judge Business School at Cambridge University, he will be discussing the mind-set that makes a business successful.

Joanna Shields, chief executive of Tech City UK, is another, more recent addition to the Accelerate 2013 line-up. Formerly Facebook’s managing director, Shields is now responsible for the Government’s pledge to bring a boost to London’s tech cluster.

The event could help owners of fast-growing businesses understand what is it they’ve been doing right – and what they need to incorporate into their strategies for the years ahead.

Many businesses, while not falling behind, find themselves wading through a mire of obstacles that can hold them back from achieving growth. One of the most common of these is access to business finance – both picking out the best lenders and getting hold of the funds needed to improve cashflow.

Call an established broker when considering alternatives to traditional, inaccessible forms of finance; invoice discounting could be the perfect solution.

John Nollett of Pailton Engineering compared Britain’s manufacturing to that of engineering titan Germany, claiming to see similarities between the skills of the two nations.

As the owner of a German manufacturer as well as a British firm, Nollett said he believes the skills of UK manufacturers “exceed” those of Germany, and that the latter is simply “better at marketing”.

Pailton Engineering manufactures steering aids for the military, construction and commercial sectors. While a fall in spending from the military has led to a tough 18 months for Pailton Engineering, which is based in Coventry, the last few months have reportedly been much more positive for the firm.

Speaking positively about orders coming up over 2013’s next two quarters, Nollett said the company’s output prospects lend confidence to the industry.

He added:

“We were worried we’d see a double dip but the past few months have been better. This month alone, we’re getting strong future orders from [car manufacturers] in Western Europe. Customers are getting in touch with bullish projections about the next quarter and beyond so they’re obviously seeing positive signs.”

Founded in 1969, Pailton Engineering started out by making precision tools during Coventry’s boom in motor manufacturing. It has since found a comfortable niche in the design and manufacturing of whole steering systems.

Many UK companies across a range of sectors have published mixed figures and forecasts for the previous months and the months ahead. For many, poor access to finance is restricting growth and allowing competitors to slip ahead. For this reason, firms are turning to alternative sources of finance, particularly invoice discounting. With a plethora of options, it pays to seek the services of an established invoice discounting broker. Those who want to improve cashflow and unlock growth should call a professional broker today.

Despite this, just over a month ago the International Monetary Fund (IMF) lowered its forecast for UK growth to just 0.7%. While IMF head Christine Lagarde neglected to comment on whether or not the UK needs to reassess austerity measures, Mark Carney – who is due to sweep up the reins as governor of the Bank of England this July – pointed to austerity measures as important for growth.

Here at PS Finance, we understand that figures were positive among SMEs. Fresh Business Thinking published a report that claimed thousands of SMEs in the UK have grown significantly over the last three years. According to the report, 4,353 SMEs have grown by at least 33% since 2010.

The secret to unlocking growth

At PS Finance, we believe a bunged up cashflow is one of the most significant obstacles slowing down the growth of UK SMEs today. Many businesses need quick access to finance, but find themselves turned down by traditional lenders for various reasons.

Earlier in the week, This is Money reported that the demand for alternative sources of finance is ‘rocketing’ – and it’s not hard to see why.

Alternative finance

Invoice discounting is a popular alternative to the standard bank loan and other traditional forms of lending.

For an increasing number of businesses, it is proving to be a great way of giving that much needed boost to cashflow and unlocking growth.

By providing essential funds against a portion of the value of existing invoices, invoice discounting will free up management’s time by negating the need to pore over unpaid accounts. This in turn will allow the key players in a business to drive it forward.

Perhaps most importantly, businesses making use of an invoice discounting facility are able to increase profitability by paying suppliers earlier and buying in larger quantities than would otherwise be accessible.

If you have found access to traditional loans closed off to your business, or that traditional finance doesn’t suit your needs, get in touch with a reputable broker today. Here at PS Finance, our team will be able to advise on the best course to take when it comes to invoice discounting. Call us today and arrange a free one-hour consultation with our directors.

The 2012 SME Finance Monitor, which was undertaken for the Taskforce by BDRC Continental, found that Welsh SMEs have proven less successful in securing both loans and overdrafts.

The yearly report puts together an in-depth look at the success rates of firms when it comes to securing finance from lenders, compiling responses from 20,000 small to medium-sized enterprises operating in the UK. Of those, 1,198 were based in Wales.

In terms of loan applications, the report showed that Wales-based SMEs are the UK’s most unsuccessful. The success rate for securing loans stood at 44%, compared to the wider UK average of 57%.

Of those businesses failing to secure a traditional loan, only 5% reported seeking an alternative source of funding. This means almost half of all the Welsh businesses surveyed ended up with no access to funding.

Welsh businesses were just as unsuccessful when it came to securing an overdraft facility – the success rate being 63% compared to 73% for the rest of the UK.

Although the report does not give a clear indication as to why Welsh businesses are falling behind in securing finance, the findings did show that only 21% of the SMEs’ financial decision-makers had formal training or financial qualifications.

Being unable to access essential funds can present a tough obstacle for SMEs. A stunted cashflow will slow down operations and hold back growth, setting jobs at risk and potentially putting off clients. For SMEs, it’s about finding the best sources available and identifying which of them fit the business’ present circumstances. Call on the services of an established broker today; professionals will be able to point you towards the best invoice discounting company.

The Business Confidence Monitor, a quarterly report, claims that confidence among businesses has reached its highest point since 2010’s third quarter. The report has also forecast stronger growth for this year’s second quarter. The official estimates have suggested that the UK’s economy saw growth of 0.3% in 2013’s opening quarter.

Together with ICAEW, a trade body for accountants, business advice company Grant Thornton believes that improved confidence in businesses will boost economic growth further. Both have forecast second quarter growth of 0.6%.

The ICAEW chief executive, Michael Izza, said:

“There is a gradual improvement in the economy and the recovery is starting to stand on more solid ground.

“We should not be complacent though. There is still a degree of fragility and the economy is susceptible to knock-backs from events outside the UK.”

According to the Business Confidence Monitor, confidence improved over every sector and in all parts of the UK. However, the survey did indicate that business investment plans remained weak. The survey likewise found that consumer spending continues to remain under pressure because of stagnated wage increases and rising prices.

Many businesses today are held back by stunted cashflows and find not only accessing finance, but identifying the right sources, difficult. Invoice discounting is increasing in popularity as an alternative but viable source of finance.

For businesses on the cusp of growth that find access to finance is the primary obstacle holding them back, the advice of a reputable broker will ultimately help improve cashflow. An established invoice discounting broker will be able to highlight the most suitable lenders, providing options that are closely tailored to a business’ present circumstances.

The figures, which were compiled as part of the company’s yearly Simply Business Start-up Index, show a 29% increase in the number of companies started by those aged between 18 and 25 since 2008 when the recession hit.

Based on as many as 750,000 annual quote requests, the data also showed that new companies made up 38% of the applications received by Simply Business in 2012 – an increase of 3.4% on 2011’s figures. This contrasts with a drop of 8.7% in the number of start-up applications over the last five years – making the rise of young business owners even more significant.

The annual study also looked at how new business owners are funding their ventures. It revealed that most businesses begin on a tight budget, with almost 60% starting with under £1,000 and 39% using no more than £500. The majority of start-up companies are funded either by personal savings or the help of family members. Only 5% of business owners manage to secure funding from their banks.

Jason Stockwood, CEO of Simply Business, spoke of the report’s results, saying:

“This has been among the most difficult periods ever faced for young people, with many traditional routes to employment now closed, so it is especially pleasing to see a new generation of entrepreneurs emerging and hopefully building the household names of the future.”

Once a business is off the ground, it’s normal to experience hindrances with cashflow. With business owners struggling to obtain financial help from high street banks, many are turning to asset finance options instead. Invoice discounting, for example, is a popular way to improve cashflow. Established brokers are on hand to help those who interested in going down such a route.

More information on the research can be found here.