A new alternative to the business overdraft
The UK’s leading independent invoice finance provider, Bibby Financial Services, has introduced a bold new funding solution for businesses: Flexidraft. The service aims to provide small- and medium-sized firms the cashflow they need, with straightforward charges. The way it works is that 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.
Refreshingly different Flexidraft launches at just the right time
The timing couldn’t be better for the introduction of this unique approach to lending, as new research suggests that many small- and medium-sized businesses are being overlooked and are unable to access funding. Instead, owners are being forced to turn to 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. These findings suggested to Bibby Financial Services that a greater variety of funding options were needed to help support these companies.
Responding to the need for more sustainable and flexible funding solutions, Flexidraft was launched. This unique funding 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. “Small and medium-sized businesses need more support and low-cost solutions from traditional and alternative lenders, and Flexidraft fills this need.”
Well received by business owners and accountants alike
Flexidraft not only offers funding as and when it’s needed, but it’s also simple to manage, easy to access and allows businesses to achieve consistent cash flow – for less than £5 a day for £10,000 (based on a daily rate of 0.0493%). Plus, owners still retain the freedom and control to run and grow their firms.
Flexidraft has been tested in the market with overwhelmingly positive feedback from accountants and businesspeople alike, especially those who cannot get adequate support from their bank and don’t want to use invoice finance. Andrew Charles, Director at Sochall Smith Limited, Chartered Accountants, specialises in advising clients who run small- to medium-sized enterprises. He says Flexidraft offers a real financial solution that is completely different to anything else in the market. “My clients like the simplicity of Flexidraft,” said Charles, “from how easy it is to access and understand, to the straightforward charges that apply. Only paying for what funding is used is just what a business wants.”
Bibby Financial Services supports businesses in both the UK and overseas, utilising expert knowledge from almost 30 years of experience, helping companies regardless of size or industry sector. It has recently secured a £430 million refinancing facility, ensuring its ability to meet increasing demands for its finance facilities.