One in three SMEs actively considering a different form of business finance
Up to 20 per cent say their current source of finance is inflexible
Banbury, UK - One third of small to medium-sized UK firms are considering a change of business funding provider in 2014, citing a lack of flexibility and poor customer service among the top reasons for moving.
Research carried out by independent invoice finance provider, Bibby Financial Services, revealed that business owners expect similar levels of service as non-business customers, with more demand for facilities such as 24-hour online access.
The research carried out among 1,000 small and medium-sized enterprises also shows that one–in-five believe their current arrangement is inflexible, with 42 per cent suggesting the service they receive from their existing provider is average or poor.
David Postings, chief executive officer at Bibby Financial Services says: “Our research shows that a significant proportion of UK businesses are considering the use of other forms of finance to their existing arrangement and it seems that many are not completely satisfied with their current provider, which is likely to be a driver for change.
“SMEs today expect much more when it comes to flexibility in relation to the amount they can borrow, contract length and online access to finance.”
More than a third of businesses surveyed said a cheaper deal would encourage them to consider a new arrangement, almost one in five (17 per cent) cited a shorter term agreement as desirable, and 15 per cent of SMEs said they would like to try a providers’ services before committing.
Postings added: “In terms of finance, businesses are becoming more like consumers and they want to try out different types of funding before taking them on.
“Increasing funding available to SMEs is critical to building solid foundations for sustainable economic growth, but it’s evident that funders need to become more flexible in their approach if they are to meet the growing demands of the marketplace.”
In relation to switching finance providers, there were a number of reasons SMEs showed caution including setting-up costs, uncertainty of customer service and a lack of information about other forms of finance available.
Postings concluded: “Businesses are widening their scope when it comes to considering different forms of finance but it seems that they still don’t have all of the information they need. In order to help them find the most suitable source of funding for their individual business model, the finance sector needs to provide more flexibility so they can make informed decisions.”
ENDS
NOTES TO EDITORS:
To find out more about Bibby Financial Services visit: www.bibbyfinancialservices.com/
To read the Bibby Financial Services blog visit: www.bibbyfinancialservicesblog.com/
For further information on this press release, or to request an interview or images, please contact Kerry Grove, Simon Peevers or Rod Dennis on 0117 973 1173 or bibbypr@brayleino.co.uk
About Bibby Financial Services
Bibby Financial Services is the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding solutions to 7,000 businesses, handling annual client turnover of £4.9 billion and advancing in the region of £388 million.
With a network of 17 local offices throughout the UK, Bibby Financial Services has the agility to make informed funding decisions quickly and efficiently.
Bibby Financial Services is a member of the Asset Based Finance Association and supports businesses in both the UK and overseas, utilising expert knowledge from more than 28 years’ experience, helping companies regardless of size across a broad range of industry sectors.
In 2011, 2012 and 2014 the company was awarded a place in The Sunday Times 100 Best Companies to Work For and in 2013 it was awarded the NACFB Best Factor and Invoice Discounter award for the sixth consecutive year and ninth in total.
About Bibby Line Group
Bibby Financial Services is supported by its parent the Bibby Line Group, a business-to-business services group involved in ship owning and operation, shallow water accommodation, offshore oil and gas services, contract logistics, financial services, memorial parks, employment law and health and safety advisory services, specialist plant and equipment hire, and retail.
The company was founded by Liverpool entrepreneur John Bibby in 1807 and has its head office in Duke Street, Liverpool.
About Bibby Leasing
Bibby Leasing is a member of the Finance and Leasing Association (FLA) and part of Bibby Financial Services, the UK’s leading independent invoice finance provider.
Bibby Leasing currently supports businesses throughout the UK in the purchasing and refinancing of essential, expensive industry equipment.