Conditions are improving for small businesses, a situation reflected most recently in new employment figures and the unveiling of Small Business Saturday, but finance remains a challenge, which is why invoice finance continues to grow in popularity in this sector.

According to a new survey from the Federation of Small Businesses (FSB), the business sector is expected to see an upturn in employment by small businesses in the third quarter of 2013. Companies are expected to hire more staff than at any time since 2010. Furthermore, the survey found that conditions are set to further improve in the short term, not least as small businesses are due to benefit from a cut in their national insurance contributions with the introduction of the Employment Allowance from April 2014.

At the same time, more small business initiatives are emerging. One of the latest is Small Business Saturday, whose purpose is to encourage people to shop exclusively in independent retailers. It will be held on 7 December and has the backing of seven business organisations, including the FSB and the British Chambers of Commerce.

However, for all the positive developments, accessing small business finance remains a challenge, as illustrated by the most recent business lending figures from the Bank of England. Invoice finance and other alternative finance products are increasingly filling the gap left by cautious traditional lenders – a recent survey highlights the upturn in use of these services for the generation of start-up funding and for raising capital to maintain cashflow.

With many small businesses continuing to consider bank loans and overdrafts unavailable, flexible, transparent and affordable alternative products, such as invoice finance, are providing a lifeline.

To find out more about A&T Business Associates services, contact us on 01903 602211 or info@atbusinessassociates.co.uk.