Member Article

Manchester-based Ashley Business Finance pays out record £75 million to support small firms

Ashley Business Finance, the Manchester-based company which provides finance products for small firms, paid out £75 million to over 900 different businesses throughout England and Wales in 2014, its highest amount to date.

The figures were a significant rise on 2013, when Ashley provided £68 million to 820 businesses.

Invoice finance and business loans were its two most popular products in 2014.

The company said the demand reflected the continuing credit squeeze for smaller businesses and late payment by big companies, amongst other trends.

Chairman, Jonathan Cranston, said:“Invoice finance plays a valuable role in freeing up cashflow in small firms and supporting those which are supplying bigger customers.

“We find that small firms are squeezed from both sides at present.

“While their major retail clients are demanding 90-day payment terms, their own suppliers are tightening up credit control and insisting on prompt payment.

“We have also seen a rise in the number of start-ups using invoice finance, not only as a means of funding but because they lack their own credit control systems to chase payments.”

“Mainstream lenders have becoming increasingly stringent in their criteria.

“We see many sound firms which have been declined bank funding over very minor issues, so those with a real element of risk would have no chance.

“We consider each case on its merits.

“As many insolvencies are caused by temporary cashflow problems, funders like Ashley which are prepared to give them a chance, can very often save the business.”

This was posted in Bdaily's Members' News section by Sophia Taha .