RBS has been accounting for a lot of newspaper ink recently, both in the financial and mainstream press. Most of the reporting has been about profits and bonuses, but there has also been some very interesting information on the bank’s lending to businesses.

While losses and bonuses have made the headlines, a rise in lending to small and medium-sized businesses in the UK has been less widely reported. RBS, the country’s largest business lender, financed £30 billion in loans to small businesses in 2010, up from £27 billion in 2009. The bank was responsible for £55 billion in corporate loans in total last year.

Interestingly, RBS’s lending accounted for almost half of the £66 billion of finance provided to the sector over the year. Hence, while these figures put RBS in a positive light, they are less flattering about its peers and raise questions about their willingness to lend in spite of the promises being made under Project Merlin.

But, there are other ways of generating cash flow and gaining access to capital for small businesses. One of these is invoice finance, which can allow companies to get their hands on funds from existing invoices. This means of finance is becoming increasingly attractive, not at least as it can be used on an invoice-by-invoice basis without the need for a long-term contract.

To find out more about A&T Business Associates’ services, including invoice discounting, contact us on 01903 602211 or info@atbusinessassociates.co.uk.