ABC enables small businesses with a turnover of up to £500,000 to immediately access and utilise cash tied-up in unpaid invoices. There are no set-up or administration charges and both the servicing and discounting fees are fixed for two years from inception. CHAPS payments and online access to Aldermore's factoring system are included in the monthly fee and ABC customers also qualify for a free copy of Sage's Instant Access Account software (see Notes to Editors for further information).
Ian Wilkins, Group Managing Director of Commercial Finance at Aldermore, said: "The objective behind the launch of ABC is to provide small businesses with a completely transparent, fixed fee finance package which will help boost their cash flow and give them greater budgetary control.
"A number of surveys have indicated that many small business owners are confused about the cost of invoice finance facilities, making them unwilling to investigate further the benefits of factoring. This new package takes away all the concerns regarding fees and charges, as they are included in the simple fixed monthly fee."
42% of businesses have indicated* that their need for finance has increased over the past 3 months and yet a massive 89% are concerned that arrangements fees are too high.
Wilkins continues: "Although the Project Merlin banks are pledging to lend £190bn this year, big businesses will be the overwhelming winners with £114bn bypassing SMEs altogether. ABC is targeted at the smallest businesses that often struggle to secure competitively priced finance and are put-off by hefty fees. We believe this package will make a big difference to thousands of small firms."
Data produced by the Federation of Small Businesses confirms that the UKs 4.8 million small and medium sized firms employ 22.8 million people, which accounts for 59.8% of the private sector workforce. Small firms also account for 49% of the UK turnover and 64% of all commercial innovations.
Aldermore has lent £360 million to small and medium sized businesses and has total assets of more than £1 billion. The bank has 8 regional business offices, providing invoice finance, asset finance and commercial mortgage facilities to more than 9,500 business customers.
Further information about ABC and Aldermore's full range of products and services for small and medium sized businesses can be obtained at www.aldermore.co.uk or by phoning 0800 021 7040.
* Research undertaken by Syscap published on 19th September 2011 confirms that 42% of businesses reported an increased need for finance in last quarter. However, only 8% of SMEs said their ability to access bank loans has improved over the last year and a third (33%) said that it continues to get worse. The research also reveals that 89% of businesses consider the arrangement fees on loans to be too high. Philip White, Chief Executive of Syscap said: "These results suggest that the reality of the situation is that businesses do want finance, but they are put off loans by high margins and excessive arrangement fees."
Full information about the research can be found at: http://www.syscap.com/news-and-opinions/459-call-for-boe-to-boost-sme-funding
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For further information about Aldermore, our financial backers and our PR contacts, please review our Notes to Editors page.