As UK businesses remain in a state of financial limbo between limited access to funding from the banks, and a Green Paper on business funding being drawn up by the Government, action is needed to promote other forms of finance which are more accessible and flexible to help businesses survive and grow, says Bibby Financial Services, which has announced it has achieved its 5,000th global client for the first time in the company’s history.

With more than half of its clients based in the UK, the largest specialist invoice financier in the domestic market is providing vital funding where banks are continuing restrictions on financial support for businesses – a problem which Vince Cable spelt out in his speech to the Liberal Democrat party conference last week: “We have a pressing practical problem, which is the lack of capital for sound, non-property, business. Many firms say they are already being crippled by banks' charges and restrictions."

Bibby Financial Services’ UK chief executive, Edward Rimmer, comments: “While we are rightly proud to have reached the 5,000 client landmark and to be supporting so many businesses in the UK at a time where looming spending cuts are likely to lead to a double-dip in the economy, action is needed on the issue of access to finance for UK businesses from Vince Cable and the Government, and they need to demand that banks release funds to provide this support, and also help educate businesses on other forms of finance open to them such as invoice finance.”

In the UK, Bibby Financial Services has triumphed over challenging economic conditions with a record numbers of deals. To date this year, 982 new clients have been added to its client base, an increase of 12 per cent on the corresponding period last year. The UK company represents one in seven new deals in its market, outperforming its industry rivals and increasing its domestic market share to 8.5 per cent.

Edward Rimmer continues: “While the last few years have seen some of the most difficult trading conditions ever, Bibby Financial Services has adapted and risen to the challenge, supporting a higher number of firms than ever before. By providing incentives for the banks to lend, the Government will directly affect a business’s chance of survival as access to funding will provide a boost to the economy needed to lessen the effects of the public sector cuts. Should the Green Paper’s investigation provide another layer of bureaucracy forcing businesses into financial limbo again, the effects of the cuts will be magnified. This would then result in businesses not receiving enough information on how other funding streams such as invoice finance, which provides flexible funding based on less complex lending criteria than the banks as the business’s sales ledger is used to secure its access to funds, can support their growth and recovery.”

For further information visit www.bibbyfinancialservices.com