Is Invoice Finance the Best Tool for Funding Business Growth?

A recent survey of 1000 businesses undertaken by Marketinvoice suggests just 1 in 10 would look to fund growth with a business loan.

Rather, amongst the surveyed businesses, more than a quarter (26%) favoured invoice finance, followed by asset-based finance (22%). Aside from debt, businesses were typically reluctant to cede control to equity or venture capital investment, with just 6% having used this method of funding to boost growth and valuation. 

Will Mason of Liquidity Club is more guarded around specific product focus, including invoice finance, ABL or business loans:
"Businesses must be wary of the ways in which they borrow and what security is offered to ensure that they remain flexible both in times of need and in times of success. For asset rich businesses the ideal growth funding might be secured, but there are many service based businesses for whom secured lending does not work and other options must be explored."

"This is why we recommend all businesses speak with an advisor when considering their financial structure and debt needs, bringing in their future plans but also taking time to consider the worst case scenarios".

To speak with us today please contact Will or the team here.

To read more about the Marketinvoice survey, click on the links below:
https://www.verdict.co.uk/leasing-life/news/sme-growth-limited-lack-finance/
http://www.p2pfinancenews.co.uk/2019/06/24/marketinvoice-smes-favouring-invoice-finance-over-business-loans-to-help-them-grow/
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