Aldermore has announced the launch of a new contract finance offering.
The new service will enable SMEs with an annual turnover above £250,000 to release working capital by advancing funds against their contractual billing.
“We have launched our contract finance offering at a time when a growing number of companies are entering into long-term contracts to outsource their supply chains or services such as IT, marketing and training,” said Andrew Dixon, commercial director for specialist finance at Aldermore (pictured above).
“Our new funding solution gives SMEs an invaluable safety net for any unexpected late payments or project delays and can be customised to meet the specific requirements of individual businesses.”
Paying employees, suppliers and subcontractors can prove challenging for businesses in certain markets, as most rely on payments from their customers to fund overheads.
These delays can cause cash flow problems and potentially limit the business's ability to take on new contracts or customers.
Contract finance can often bridge the gap by providing funding within 24 hours.
“The nature of what we do means that it is common for us to have to wait for payments from our clients,” added Mike Wood, managing director of West Midlands-based developer Telling Architectural.
“Aldermore understands this and their expert team pulled out all the stops to deliver a bespoke funding solution for us based on their new contract finance offering in a very short space of time.
“The specialist support from the bank gives us peace of mind that we will always have the capital available to pay our employees and suppliers regardless of whether we experience a delay in receiving payment for the work we do.”
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