UK Finance & Leasing Association supports newly published British Business Bank finance guide

Simon Goldie, Head of Asset Finance at the UK Finance & Leasing Association (FLA) (pictured), said: “Contributions from across the finance industry make this a must-have booklet for anyone in business, because it recognises that methods of financing investment vary depending on the age, stage, size and type of business in question.

“The FLA’s section sets out the merits of equipment leasing and hire purchase, options which account for almost 30% of fixed capital investment in the UK last year.”                                                                

The launch of the new guide comes the day after the UK government introduced the Small Business, Enterprise and Employment Bill which includes measures to increase the availability and sources of investment for small businesses by opening up access to small business credit data and to improve larger companies payment practices.

The guide sets out the full range of debt and equity finance options for businesses as they journey from start-up to growth to listing on the stock exchange, and is backed by an unprecedented 19 leading business and finance organisations. It focuses on the market as a whole, offering several tools and ideas to help businesses weigh-up their options, make decisions and plan how they will finance expansion.

Business Secretary Vince Cable explained: “The business finance market is going through a period of rapid change with challenger banks, peer-to-peer lenders and invoice financing gaining traction. But over two-thirds of small and medium sized firms only go to one finance provider, so it’s important businesses know about the huge variety of options open to them.

“This newly-published free guide should be essential reading for all entrepreneurs and directors, and will play a key role in raising awareness of the different types of finance available to start or grow their business.”

Michael Izza, ICAEW’s chief executive, added: “Business investment is forecast to grow by 8.2% this year, up from a previous forecast of 7.1%, and confidence is at a record high. Companies may be wary of less well known sources of finance but this guide aims to answer any questions they have about a wide range of options.”

David Petrie, Head of ICAEW Corporate Finance Faculty, said: “The guide is supported by 19 partner organisations including ICAEW and the British Business Bank – the first time this and happened. Together they represent over 1 million members.”

The British Business Bank’s strategic intent is to ensure that finance markets for small and medium-sized businesses work effectively, allowing them to prosper, grow and build UK economic activity. It is a key element of the government’s industrial strategy, and its programme aims to make the UK the best place in Europe to start, grow and finance a business.

It will operate as a government-owned financial institution once HM Government has received European Commission state aid clearance, expected later in 2014. Until that point, the British Business Bank programme is being run by the Department for Business, Innovation and Skills. The programme is not authorized or regulated by the Financial Conduct Authority or the Prudential Regulation Authority. Recent performance highlights and developments include:

Some £782m of total lending and investment supported by the Bank in FY 2013-14, over double the level of government support in FY 2012; approximately 55% of this was through non-traditional finance providers.

Over 31,000 businesses were benefiting from £1.56bn of lending and investment supported by British Business Bank programmes at the end of FY 2013-14.