Multi-currency funding product launched to solve SME cashflow catastrophe


As SMEs grapple with a cashflow crisis, with recent research having revealed that the average SME’s outgoings exceed monthly revenues for four months of the year, a-new finance product has been launched to help prevent manufacturing and logistics businesses being crippled by late payments and barriers to international trade.

Launched by alternative funding provider Growth Lending, the new invoice finance product will address cashflow concerns across key currencies and international markets. Aimed at supporting the cashflow needs of SMEs while they await payment of outstanding invoices, the new product has been developed to address a gap in market for companies with international operations and a need for Euro and US dollar invoice finance.

The new invoice finance facility offers fees of 0.75% typical per month of invoices financed and as well as multiple currencies, is available to businesses registered in the UK, the United States, Germany and other Organisation for Economic Co-operation and Development (OECD) countries.

Growth Lending’s product innovation comes at a time of great uncertainty for UK businesses, as disrupted supply chains, the cost-of-living crisis and the conflict in Ukraine have a combined effect on international markets. This product offers businesses an opportunity to capitalise on international expansion and growth, especially those that operate as a group with subsidiaries overseas, or with US and European debtors. This is particularly prominent for fast-growing businesses, which may have struggled to secure funding for international operations from traditional lenders.

Invoice finance enables businesses to alleviate some of the pressure experienced when chasing invoice payments, which can often be a lengthy process, as typical payment terms can be up to 120 days. Instead, financial businesses can receive up to 90% of this cash up front, reinvesting this capital in their own success and growth, while maintaining the strong supply chain relationships that are crucial in the current environment.

Lauren Couch, Managing Director of Growth Lending, says: “The launch of this new product addresses a significant market gap and is an exciting opportunity for both Growth Lending and our clients. The past two years have presented firms with an incredibly tough trading environment and as these challenges show no sign of slowing down, it is instrumental that lenders are able to support the SMEs that are the backbone of our economy.”

“What’s more, the multi-currency aspect of this new product enables us to better-support businesses that trade overseas, or have subsidiaries abroad, offering a unique funding line to firms that have faced mass supply chain disruption, such as those in the manufacturing, FMCG and logistics industries.”

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