In the spotlight: Aldermore, alternative finance & SMEs

CR: You recently launched a new invoice finance facility for construction subcontractors – what else has the team got planned for 2014?

The team is newly formed and so we’re excited to have already launched the construction product and more importantly to be seeing early demand. However, we never sit still for long at Aldermore, we have just launched a trade finance product. This will help to free up cash flow for UK SME importers. They often need to access finance in order to fund purchases while their goods are being transported across the world particularly at their busy times of the year.   

CR: Why do you think more clients are turning to alternative funding methods?

The financial crisis led to many businesses struggling to access the more traditional forms of lending. This resulted in many SMEs looking for alternatives and so raised aware of the various forms of finance available to them. Today many more businesses recognise that a traditional bank loan or overdraft facility is not the only option. invoice finance is a good way to get cash flowing particularly to grow a business. At Aldermore we are finding that many clients are looking to free up funds to take advantage of new opportunities.

‘Alternative’ forms of finance are also coming to the fore as many people feel that banks have simply lost touch with their customers and this often comes from their experience of dealing with banks during the economic downturn. Unlike traditional banks we truly understand the customers we service. We share common ground with many of our invoice finance customers as Aldermore has only been established for five years, so we very much identify with the challenges that growing businesses are faced with. We are small enough to listen and react quickly to our customers’ needs, and our own people share the ambitious and entrepreneurial outlook of the businesses that we support.

CR: Why and when should intermediaries recommend invoice finance to their clients?

Invoice finance is a cash flow solution that's ideal for growing businesses, helping to quickly release cash tied up in unpaid invoices, and in most cases releasing more funds than a typical overdraft.

CR: Given the recent data from the BoE showing that SME funding has fallen, how else does Aldermore support businesses in the UK?

We offer a multitude of products and services for British small and medium-sized enterprises, homeowners and savers across the UK, including savings, commercial and residential mortgages, asset finance and invoice finance.  Aldermore support thousands of businesses, helping a wide range of customers, big and small, across an increasingly broad variety of sectors.

CR: If you weren’t in financial services, what would you be doing?

My first ever paying job was playing clarinet in an orchestra. So maybe I would be doing that?