The difference between this recession and the last one is that businesses have a much wider option of finance products than they previously had. In particular there are dozens of factoring and invoice discounting businesses providing bespoke funding options.
Not only has factoring continued to thrive in the recession many Managing Directors and Finance Directors are turning to the Crown to obtain payment holidays with PAYE and VAT. Any additioanl cash flow benefit will greatly enhance chances of survival in these difficult times.
In some cases it may be necessary to restructure the business via a pr-packaged administration. Again there are so many options available to directors than there were 10 or 20 years ago.
Six months the finance market was in turmoil as many funders were reluctant to extend finance and some funders particularly the foreign owned funders pulled out of the market completely.
On a positive note providing the deal stacks up there are many business financing options available to businesses. There are still adequately funded factoring and invoice discounting business still open for business. Many of these lessor known funders can still provide support for businesses which are basically sound but have come up against financial difficulties not previously experienced. These are the businesses which the banks have been struggling to assist.
The sooner a we are advised of a problem the sooner we can explore the options and provide a recovery solution.
Tags: business financing, Factoring
