Aldermore offers SMEs practical solutions to support cash flow needs

POSTED: 5th October 2020
IN: Newsroom
  • Aldermore’s ‘Kick Start your Cash flow’ campaign launches by introducing new flexible Invoice Finance solutions aimed at easing SME’s cash flow needs
  • The offering includes no contract tie-in for first six months, and no set up fee for discounting and factoring products
  • Smoother onboarding process – secure electronic signing of documents through Adobe Sign

Aldermore bank has today announced a range of practical and flexible Invoice Finance solutions to support small and medium-sized enterprises (SMEs) with their cash flow needs1. Recent research2 from Aldermore found the pandemic has caused a 30% loss in monthly business income for the average SME, which has impacted their cash flow along with the other challenges they’re facing.

Ross McFarlane director of Invoice Finance at Aldermore, said: “Whilst the economy has started to open up, and businesses can go back to operating in a ‘new normal’, the Covid-19 pandemic continues to have a profound impact upon the economy and the SME community. The current situation is uncertain, with the threat of further localised lockdowns and concerns over how the closure of the furlough scheme will impact businesses.

“As a result, SME’s face a challenging cash flow dilemma, as they look at different ways to safeguard their business during this period. Invoice Finance offers businesses a practical, flexible finance solution to enable them to protect their cash flow and keep their business operating effectively. Aldermore’s ‘Kick Start your Cash flow’ campaign is aimed at supporting SMEs by providing them with simple and flexible access to the finance they need. Our new Invoice Finance offering is now available to SMEs and will be rolled out across our wide network of business introducers through a range of channels”.

Whilst businesses are taking steps to protect themselves, with two thirds (67%) cutting costs and 69% looking for ways to increase their income according to our research, pressures on SMEs are likely to continue as some government support schemes, such as furlough come to an end. For example, our research indicates that 16% of small businesses are using the furlough scheme as a cost cutting strategy and with recent data3 from the FSB finding that a quarter (23%) of small businesses have already cut jobs in the last quarter, there are concerns that there will be a surge in unemployment.

Furthermore, a recent BVA SME finance monitor4 report found that 30% fewer SMEs were using external finance to help with their cash flow needs in the second quarter of 2020, with businesses citing concerns over their ability to repay. Instead, businesses have increasingly turned to different finance options, with 29% using their own personal funds. However, rather than resorting to personal funds, Invoice Finance offers SMEs the opportunity to access finance solutions in a flexible and simple way. For more information about the campaign visit:

**Ends**

Notes to editors

1 Aldermore are offering new clients a no minimum contract period for the first six months, of which is subject to 28 days’ notice of termination of their facility. In addition, there will be no arrangement fee to be paid. This promotion is available on a discretionary basis by us to new clients subject to our normal checks and formal credit approval to enter into a qualifying invoice finance agreement which is subject to the terms of this promotion. Following the initial six months, the contract notice of termination period will revert to three months or other period as we may agree. This offer applies to an invoice discounting or factoring facility, with a facility size of between £100,000 and £1,000,000. This offer is available until 28 February 2021 but we may extend this date to another to be communicated. This offer excludes asset based lending, construction, contract or a trade finance facility. The promotion is subject to the applicable terms and conditions of the invoice finance agreement (of which the general conditions can be found here - Aldermore invoice finance general conditions). Any dispute relating to this promotion shall be governed by and construed in accordance with English law, and subject to the exclusive jurisdiction of the courts of England.

2Research conducted by Opinium Research between 03 and 13 July 2020 with a nationally representative sample of 1,006 senior decision makers in UK SMEs.

3https://www.fsb.org.uk/resources-page/one-in-five-small-firms-forced-to-cut-staff-amid-split-in-performance-expectation.html

4BVA BDRC SME Finance Monitor Q2 2020, August 2020

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