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TIGHT PURSE STRINGS at the banks are making more Irish small businesses turn to non-traditional lenders.
New data from the Asset Based Finance Association (ABFA) showed the share of small businesses, those with an annual turnover of under €500,000, borrowing from the sector had gone up 40% in the last year.
During the second quarter of 2014, the amount of money advanced to companies with turnovers between €1 million and €5 million a year, which made up the largest share of borrowers, went up 13% to €324 million over the three months.
ABFA Ireland chairperson Eddie Brown said the total number of businesses turning to asset-based finance had changed little, but the amount of money they were borrowing had gone up.
We are seeing more and more businesses of all sizes and types taking advantage of invoice finance to fuel their growth, particularly as more traditional forms of lending remain subdued,” he said.
What is all this asset-based finance business?
The asset-based finance sector covers money borrowed against a business’s resources, which can mean anything from cash owed by customers, to stock in the warehouse or forecast future income.
It has traditionally been considered a last-choice option for businesses which did not qualify for traditional loans due to bad credit ratings or other stumbling blocks.
Many Small and Medium Enterprises (SMEs) complain they have been struggling to get loans from reluctant banks, despite an increase in the demand for credit.
The ABFA said invoice finance, or cash lent against unpaid accounts, was the most popular type of asset-based finance..
Brown said: “Asset based finance – particularly invoice finance – is now a realistic alternative to traditional lending for SMEs and is fast becoming a standard part of the finance suite for businesses.”
The biggest figures on many businesses’ balance sheets came from unpaid customer invoices, the ABFA said.
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We don’t need no stinking licence…..
Candygram for Mongo !
“Steeenking License”
By the way some people drive over here, sometimes you would think its the same situation .
Imagine if penalty points was introduced in Mexico, would be more shootings a day than car deaths.
I’m in Mexico City as we speak. Drivers here, particularly taxi drivers, are mental. You have to be in order to survive. They actually make Irish drivers look half decent by comparison!
Aye car umbra
Wow that’s something. They don’t even require people to buy a license like me nan did back in the day.
We can all blame Eugene Lambert for introducing the driving test into the country…
“That was around the time Eugene bought Finnegan a driving licence, thereby precipitating the introduction of the driving test in this country”
http://www.independent.ie/world-news/eugene-lambert-26636391.html
That last paragraph made my jaw drop.
And the one before it !!
have your say