Time Finance is seeing increased demand from UK businesses for funding packages that combine invoice finance, asset finance and secured loans, according to Andy Hume.
Hume says many businesses continue to carry Covid-related debt, including government-backed loans and outstanding HMRC liabilities. He also highlights HMRC’s tougher approach to Time to Pay arrangements, which allow businesses to pay tax debts over an agreed period. He believes this is contributing to rising insolvencies.
For businesses seeking invoice finance for the first time, Hume says the relationship with the lender is a key consideration. He advises against choosing a provider based solely on cost, arguing that businesses should prioritise a lender that understands their circumstances and can structure an appropriate facility.
Hume expects interest rates to fall over the next few years, although more slowly than previously anticipated. He does not expect a return to the sub-1% rates seen between 2009 and 2022, but believes lower borrowing costs could encourage businesses to seek funding and create opportunities for lenders.
He says his role involves helping business owners structure finance facilities that support their objectives, even where the proposed arrangement may not be the most profitable option for the lender.
Time Finance is also seeing more businesses seeking multi-product facilities to support growth plans. Its offering includes invoice finance, which can release cash tied up in unpaid customer invoices, asset finance to fund equipment purchases, and secured loans.
The combined facilities can reach up to £4.5 million, allowing Time Finance to address different funding requirements among UK small and medium-sized enterprises.
Hume also highlights Time Finance’s relationship with Evolve Business Finance, with the two businesses having worked together for more than a decade. He says Evolve’s understanding of clients’ financial needs and its preparation of funding proposals help support the lending process.
Time Finance plc (LON:TIME) is an AIM-listed business specialising in the provision or arrangement of funding solutions to UK businesses seeking to access the finance they need to realise their growth plans. Time Finance can fund businesses or arrange funding with their trusted partners through Asset Finance, Invoice Finance, Business Loans, Vehicle Finance or Asset Based Lending.
