In response to the failing government âFunding for Lendingâ scheme lacking in support for SME cash flow, Hitachi Capital Invoice Finance has launched a new product, âInspired Cashflowâ, with a ÂŁ500 million lending facility to boost SMEs finances.
Online PR News – 18-October-2012 – Telford – In response to the failing government âFunding for Lendingâ scheme lacking in support for SME cash flow, Hitachi Capital Invoice Finance has launched a new product, âInspired Cashflowâ, with a ÂŁ500 million lending facility to boost SMEs finances.
In a first for the Invoice Finance market, Inspired Cashflow is an effective and simple concept, importantly featuring no set-up costs and just one single fee. Crucially, Inspired Cashflow has no hidden or extra costs, and offers an easy, secure live web application and fulfilment process.
The secure and cost effective cashflow finance solution was launched after Hitachi Capital conducted new research from 1,000 SMEs, and found 43% had a cash flow concern and incredibly 72% didnât realise they could unlock finance from the balance sheet through Invoice Finance products. It appears that one in five SMEs are having cash flow problems but the majority are concerned about using Invoice Finance, due to lack of knowledge and understanding of available options. Consequently SMEs have nowhere to turn.
John Atkinson, Head of Commercial Business, Hitachi Capital Invoice Finance said: âItâs scary to see from the research that nearly half of SMEs are sourcing finance from secured loans (20%), bank overdrafts (17%) and even credit cards (12%) â which are all high chargers â but Inspired Cashflow, in most cases, release twice as much money and costs much less than using a standard bank overdraft facility. Itâs even more worrying is that other sources including, friends, family, life savings and selling assets were used by nearly 28% to increase cash flow finance.
âIn response to this, we have launched the new Inspired Cashflow product and see this as an important step forward for the industry, with our ÂŁ500 million lending facility at the heart of the scheme. It breaks down barriers between SMEs and Invoice Finance and is designed to prompt SMEâs to take a fresh look at their business finances to improve cash flow, helping them grow faster!
âOver half of SMEs donât understand how invoice finance works or have never heard of it before, this is why our product has been designed to be honest and open, with a straight forward easy to use approach. Our research also shows that 41% of SMEs would consider using Invoice Finance if they knew more about it.â
John Atkinson, added: âUnderstandably, with an ever changing economic landscape, SMEs are wary of agreeing to lengthy finance agreements common with some factoring companies. Inspired Cashflow addresses this with a six month trial period with no long contracts, meaning businesses can be flexible with their finance management.â
For more information please visit www.inspiredcashflow.co.uk or call the team on 08081 635 394.
Head of Commercial Business John Atkinson is available for comment or interviews.
With 25 yearsâ experience in financial services, John Atkinson has been at Hitachi Capital for over seven years, most recently as Group Head of Marketing. Previously working for Lloyds TSB and Halifax, John is fronting the Invoice Finance team as it aims to help SMEâs in these tough economic times.
We are happy to provide comment, feature contributions or case study materials in the following areas:
â˘ Cash flow
â˘ Invoice discounting
â˘ General market commentary
â˘ Recession and growth in the industry / economic climate
â˘ Report of surveys relating to factoring and invoice discounting
â˘ Lending to small businesses
Notes to editor
OnePoll surveyed 1000 SMEs between 7-11 September 2012
Hitachi Capital Invoice Finance provides cash-flow solutions to over 365 SMEâs across a wide range of sectors in the UK and places great emphasis on the proactive support it offers to UK SMEâs. For more information please visit http://www.hitachicapital.co.uk/factoring/
Hitachi Capital Invoice Finance provides cash-flow solutions to over 400 SMEâs across a wide range of sectors in the UK and has won the 2012 Credit Today award for Factorer and Discounter of the Year.
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