1st March, 2012

Small Business Finance Directory launched to help small businesses find commercial finance

A new directory of around one thousand sources of commercial finance for small businesses has been launched today. Designed to help businesses find alternatives to conventional bank loans or overdrafts when these may be hard to obtain, the Directory covers leasing and hire purchase, commercial mortgages, asset-based finance and invoice discounting and factoring.

The Directory was developed by the Finance and Leasing Association (FLA) and the National Association of Commercial Finance Brokers (NACFB) with the support of the Asset Based Finance Association (ABFA). It aims to help around 60,000 businesses to find suitable commercial finance in its first year.

It is the first comprehensive Directory of its kind to cover the UK as a whole. It includes a search facility based on the region, town or postcode of local sources of finance and brokers.

Businesses may need finance for a variety of reasons, including short-term cash flow or working capital, asset purchases, business development, the purchase of stock, and the financing of imports or exports. Research shows that most small businesses have some awareness of the types of commercial finance available, but often do not know where to find them.

The Directory aims to help them do just that. The independent advisors listed in the directory can also help to match business needs with affordable finance.

The Commercial Secretary to the Treasury, Lord Sassoon, said:
"The Government recognises that small businesses are the lifeblood of our economy. That is why we are providing support to small businesses to ensure that they can access affordable finance to invest and grow. I am delighted to help launch the Small Business Finance Directory, which will assist businesses to find alternative sources of finance. The Small Business Finance Directory has been developed at the request of local businesses and I wish the scheme success in meeting the target to help 60,000 businesses in the next twelve months."

Additional quotes:

"The National Association of Commercial Finance Brokers has for many years assisted SMEs to find funding – last year, in excess of £10bn. The Small Business Finance Directory has been developed to allow our members, who have access to a vast range of commercial finance lenders, to help many more small businesses across the UK. This initiative will really make a difference by highlighting the range of alternative forms of commercial finance available to businesses."
Adam Tyler – Chief Executive of the National Association of Commercial Finance Brokers

"Every day, around 1000 small businesses agree asset finance deals which help them invest in essential new equipment. Many more would do so if they had easy access to the available sources of alternative finance. The Directory responds to requests from small businesses for a clear and comprehensive reference source for their funding needs."
Stephen Sklaroff, Director General of the Finance & Leasing Association

"This is a great resource for companies when they are looking for funding. The small business finder makes it easier for SMEs to get information on the complete range of alternative sources of finance. These types of finance are becoming increasingly popular – for instance, invoice finance and asset based lending grew 9% last year, with around £16bn out to businesses at any one time."
Kate Sharp, Chief Executive of the Asset Based Finance Association