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£250m Business Overdraft Scrappage Scheme
• £250m worth of funding made available to SMEs • SMEs encouraged to switch from unreliable overdrafts • Online comparison tool launched
The Invoice and Asset Based lender has made £250m worth of funding available to encourage SMEs to scrap their overdrafts in favour of invoice finance.
Under the scheme, SMEs are able to trial a finance facility for 6-months with no-commitment to determine whether it is right for their business. (i)
The scheme has been launched in response to recent researchi by the company which found that SMEs are struggling to stay in control of their finances as a result of changing overdraft fees and conditions. (ii)
Peter Ewen, Managing Director at ABN AMRO Commercial Finance, says: "A great number of SMEs seem to be relying on their overdrafts to cover cash flow gaps during tough times. This dependence is dangerous in the current financial climate, as banks are increasingly unable to guarantee consistent funding in this way.”
SMEs are encouraged to take part in a ‘scrappage challenge’, using the online calculator to see for themselves how an overdraft performs against an alternative.
Ewen says: "SMEs are critical to the UK economy and its recovery. But they need access to reliable funding and support to keep the cogs turning.
“Traditional finance is no longer relevant for many SMEs – these businesses should consider scrapping their overdrafts and looking at alternatives like invoice finance. This scheme is about giving SMEs the control and financial reliability they need to focus on growth.”
Notes to editors
For further information or an interview with Peter Ewen, please contact:
Lauren Greatorex or Xenia Kingsley at Man Bites Dog
01273 716 820 / lauren.greatorex@
About ABN AMRO Commercial Finance PLC
ABN AMRO Commercial Finance is an award-winning Invoice and Asset Based Lender and part of the ABN AMRO Commercial Finance Group. Established in 1989, the company provides Factoring, Invoice Discounting, Export Finance, Structured Finance, Asset Based Lending and numerous related services to start-ups through to £500m turnover organisations. Providing consistent support via its 200+ staff and 11 regional offices, ABN AMRO Commercial Finance helps clients manage working capital, refinance, restructure, fund business opportunities and expansion, purchase new equipment and finance M&As.
i Zero termination fees within first six months of agreement. This is a “no quibble” offer, allowing the client to terminate at their discretion within the offer period.
ii About the research
The research was conducted amongst 250 SME owners, managers and financial controllers by Coleman Parkes on behalf of ABN AMRO Commercial Finance. The research was conducted online in August 2012.
SMEs can join in the debate on LinkedIn: http://www.linkedin.com/
To use the online calculator, visit: http://www.businessoverdraftscrappage.co.uk/?
Page Updated Last on: Nov 08, 2012