Bank network to help Bradford firms (From Bradford Telegraph and Argus)

Bank network to help Bradford firms

10:21am Thursday 2nd July 2009

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Small and medium-sized companies will have access to a £100 million fund to improve their cash-flow during the economic downturn.

Yorkshire Bank’s National Invoice Finance Team is providing the funds through its network of 77 financial solutions centres across the country, including one in Bradford.

Invoice finance, sometimes called cash-flow finance, allows businesses to obtain up to 85 per cent of the value of invoices they issue immediately with the remainder payable when payment is received.

The service means that businesses are not hampered by late payments as they have rapid access to funds which reflect their commercial performance.

Andy Davidson, managing partner of Yorkshire Bank’s Bradford-based West Yorkshire Financial Solutions Centre (FSC) in Canal Road, said: “Tougher economic conditions traditionally lead to pressure on cashflow for small to medium-sized businesses, compounded by a tendency among their customer businesses to delay payments, usually because they face similar difficulties.

“Invoice finance helps businesses to run smoothly by releasing a proportion of invoiced values immediately.

“We are sure that many will want to benefit from the additional funds available and that it will play an important role in helping both our existing and new business customers operate in the current climate.”

Yorkshire Bank’s National Invoice team has 80 staff.A further eight new jobs, including auditors and relationship managers who will work throughout the UK, are being created to help meet the high demand for the bank’s cash injection.

Mr Davidson, whose area also covers Calderdale and Kirklees, said: “We are keen to see new, well-managed companies benefit from this new fund, demonstrating our ongoing commitment to support SMEs which are the backbone of the economy.”

The new fund follows the release of Yorkshire Bank’s interim results in April which showed, in the six months to March 31, it had expanded its customer base by five per cent with business lending up by 14 per cent. That represents £1.2 billion of new money to support local business and deposits increasing by 15 per cent. In the last six months the bank increased lending in Bradford by 23 per cent.

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