years. There simply hasn’t been a need to fund additional growth or activity in the acquisition market.
Conversely the anticipated level of business failure has not been evident. Banks and government have no doubt been more supportive of their customers during these difficult times.
However we await the impact in 2011 on
smaller UK businesses of the government’s spending cuts coupled with an increase in VAT.
Crédit Agricole Commercial Finance’s international business has grown in 2010. Perhaps some of this is because of further increases in our service quality as scored by IFG members where as both import and export factors we were nine places higher than our nearest UK competitor. Richard Hall and his team are working very hard to provide the best possible service to IFG members but also to negotiate with credit insurers to get increased cover. As we have moved through 2010 we have seen a general improvement in provision of limits by credit insurance companies and our expectation is for further improvement during the remainder of the year and into 2011. We are confident of continued growth both domestically and internationally during 2011.
Jeff Longhurst Managing Director
GE Capital The last 12 to 18 months have undoubtedly been a period of survival for many UK businesses. The aftermath of the financial crisis, the uncertainty of an economy in recession underpinned with changes in the socio-political environment, have necessitated a shift in focus for businesses. Whilst this survival mentality continues, businesses in 2010 have begun to re-address the decisions they deferred in the last year whilst bringing the focus on accelerating growth in an uncertain world to the top of the agenda. Early 2010 bore more than a slight resemblance to 2009 with only a trickle of deal activity. However there did appear to be more positivity in the market. Activity remained oppressed amid election fever and concern about potential spending cuts to be introduced by the new government. Activity during the summer season was particularly benign. Low interest rates coupled with
a sympathetic treasury, and continued uncertainty around the depth and scale of public sector cuts, meant that businesses did not rush strategic decision making.
period of trading we have been encouraged by the number and diversity of the enquiries we have received. Whilst prospects still seek a keen price, being able to generate sufficient funding is the overriding requirement. Looking ahead to 2011, we expect the
John Jenkins
We have seen an encouraging increase in enquiries since the end of the summer. Furthermore, there seems to be more conviction among management teams who are looking to fund the growth of their businesses. Traditionally, the last quarter of the year is our busiest period and activity in our segments has witnessed a healthy pick- up. Our corporate structured finance team, which focuses on larger corporates, has the strongest pipeline it has seen in four years. Deal activity in the commercial finance segment, which focuses on SME and mid- market, has also recovered with capital being used wisely to fund a number of deals in the last quarter.
Our focus for 2011 will be on growth. Our intent is very much illustrated by our lending appetite and our commitment to the market. We are recruiting both nationally and regionally and we will continue to develop and invest. At GE Capital, we understand how the landscape and agenda for ambitious firms across the UK has now shifted, and we feel that we have a central role to play in driving choice and enabling UK businesses to access innovative forms of funding that allow them to fund growth.
John Jenkins CEO
Innovation Finance
Innovation Finance Limited is an independent UK-based invoice financier that only commenced trading in Q3 of this year. As a consequence it is difficult to comment on the year as a whole. However, in our short
Business Money
Lloyds TSB Commercial Finance The past year has seen tentative economic recovery and businesses across many sectors are experiencing increased opportunities, both at home and abroad.
November/December 2010 91
UK economy to remain fragile, with the banks still adopting a conservative stance toward lending; with newly agreed facilities attracting higher fees and, often, increased security requirements. However, the signs are the SME sector has reached the bottom of the de-stocking cycle and will need to gear up next year. We believe our sector is ideally placed to fund this need, the key will be getting the message to a sufficiently big enough audience. The perceived major risk is increasing business failures with the obvious knock-on impact if funding is not readily available.
Roger Taylor
It is also our belief international trade will pick up next year. Domestic re-stocking will create opportunities for importers. The government is promoting exports as part of the recovery and again we believe invoice finance has a key role to place in supporting this drive. Through our membership of IFG we will be able to provide facilities to exporters. In summary a challenging year ahead, but an exciting opportunity for the invoice finance sector to pick up more of the SME funding needs and to grow more rapidly than over the last 12 months.
Roger Taylor Director
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