Firms offered cut of £100m funding pot

BANK funding is slowly returning to East Yorkshire's commercial market as firms are encouraged to claim their share of a new finance pot.

Yorkshire Bank has released £100m to the small and medium enterprise (SME) sector nationally, a chunk of which will be distributed by its East Yorkshire And Lincolnshire Financial Solutions Centre (FSC) in Priory Park, west Hull.

The money is available on a invoice finance basis and means businesses can obtain up to 85 per cent of the value of issued invoices immediately online, with the remainder payable when payment is received.

Invoice finance reduces the burden of late payments by bolstering a company's cash flow.

Graham Watson, managing partner at Yorkshire Bank's East Yorkshire and Lincolnshire FSC, said: "Tougher economic conditions traditionally lead to pressure on cash-flow for small to medium-sized businesses, which is 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."

Yorkshire Bank's East Yorkshire and Lincolnshire FSC has 48 staff and covers from Bridlington to Lincoln taking in Goole, Scunthorpe, Immingham, Hull and Grimsby.

Defying the trend during the downturn, the bank has increased its customer base across the region by five per cent and its lending is up four per cent.

Mr Watson said: "As well as helping existing business customers of the bank, we are keen to see new, well-managed companies benefit from this new fund, demonstrating our ongoing commitment to support SMEs – the backbone of the economy."

One company to take advantage of funding offered by Yorkshire Bank is Grimsby-based Icelandic Group UK Ltd.

Simon Webster, UK group financial controller, said: "Having one relationship manager who understands our business, with the invoice finance team adding further value, gives us the confidence we need in these difficult times."

The announcement of the fund comes on top of news Yorkshire Bank provided assistance to Cranswick PLC in its recent £17.2m buyout of rival meat firm Bowes of Norfolk.

The funding was part of a three-year credit facility arranged with Lloyds TSB Corporate Markets and The Royal Bank of Scotland in December – at the height of the credit crunch.

Links

Yorkshire Bank

www.ybonline.co.uk

Cranswick PLC

www.cranswickplc.co.uk