Flexidraft fills a need for cash-strapped businesses
New research suggests that many small and medium-sized businesses are unable to access funding. Instead, firms are relying on unsustainable forms of finance, such as loans from families and friends. In fact, in the third quarter of 2012, 60 per cent of the firms surveyed by Bibby Financial Services said they had not even applied for any external finance in the past 12 months, which suggests a greater variety of funding options are needed to help support businesses.
Bibby Financial Services introduces a new flexible funding solution
Responding to the need for more sustainable and flexible funding options, the UK’s leading independent invoice finance provider has launched Flexidraft. This unique working capital solution provides firms with quick access to the cash they need, when they need it. “We are the first provider to offer this kind of facility,” says Andrew Dixon, New Product Director at Bibby Financial Services.
“It’s quick and easy to set up and can provide instant access to cash by simply transferring funds online from the client’s Flexidraft account directly into their bank account,” says Dixon. “Small and medium-sized businesses need more support and low-cost solutions from traditional and alternative lenders, and Flexidraft fills this need.”
Finally, businesses can access the cashflow they need at low cost
With everything Flexidraft has to offer, relying on it for funding can be a smart business decision. Flexidraft clients benefit from immediate and ongoing funding for whatever their needs. A firm can access up to 50% of the value of its sales ledger up to a maximum of £100,000. Meaning, if you’re given an advance of £10,000 (based on 50% of the value of its sales ledger) and utilise the full amount, it will cost you less than £5 per day (based on a daily rate of 0.0493%). Also, if the funding isn’t used, there is no charge.
In addition to giving firms quick access to the cash they need with straightforward charging, Flexidraft offers another key benefit: owners retain control over their finances, giving them the freedom to run and grow their businesses.
How does Flexidraft work?
A trust account is set up in the name of the business, and Bibby Financial Services sets the funding limit on this account. Then, the sales go through the trust account and the money gets transferred online from there into the business’s bank account as required. With immediate and ongoing funding, quick access to cash and a secure form of funding at low cost, Flexidraft truly is a simple and unique solution.
“Being an independent funding provider means we are able to deliver flexible solutions such as Flexidraft, which make a significant difference to the small- and medium-sized businesses that have been overlooked,” says Dixon. Hopefully with the introduction of flexible alternatives to the overdraft, the businesses that have been overlooked will gain access to the funds they need to thrive in a competitive market.