Chichester: Major boost in invoice finance usage driven by SMEs says Tandem Invoice Finance

Chichester-based Tandem Invoice Finance has reported a two-fold increase over the past 12-months in the take-up of its selective invoice finance products from businesses with a turnover up to £1,500,000, illustrating the appetite that SMEs have towards accessing flexible finance options. This mirrors recent reports from the Asset Based Finance Association (ABFA) confirming that in 2012 just under 43,000 firms used asset-based finance to support their organisations’ financial requirements, of which 83% are classed as SMEs wishing to unlock the value of their invoices. 

Invoice finance products such as Tandem’s selective invoice finance offer higher levels of finance with lower overall risk. The flexibility to finance one-off invoices on an ad-hoc basis is an advantage and helps SMEs better manage cashflow without surrendering whole debtor books and removing the requirement to ‘credit manage’ clients.

Malcolm Piper, Tandem Invoice Finance director, commented: “When the recession took hold in 2008, we developed a client-focused selective invoice finance product, creating a niche sector in the world of asset-based finance. By listening and reacting to the genuine financial needs of cash-strapped SMEs, we are actively helping SMEs boost their working capital, and the uptake in demand is testament to its increasing popularity among business owners looking for a more flexible finance solution.

“Following the latest industry reports from ABFA, firms that use invoice finance enjoyed increased sales of nearly 13% in Q4 of 2012 compared to Q3 2012. This is the highest growth rate since 2009, showcasing the change in attitude regarding asset-based finance products. It is proof that this type of finance suits growing businesses and we are confident that take-up will only continue.”