Since 2012 the alternative finance industry, which encompasses services from peer-to-peer lending and crowd funding to invoice discounting and spot factoring, has more than doubled year on year in the UK. This year, it’s expected to total nearly £7 billion as the need for non-traditional finance continues to increase.
International spot factoring franchise The Interface Financial Group (IFG) is set to expand into Scotland in a bid to provide thousands of businesses with a financial alternative to the traditional bank loan.
IFG says it plans to establish a number of franchises across Scotland and will host an event tomorrow (Tuesday, October 13) at the Lighthouse in Glasgow to raise awareness of the booming alternative finance industry and to attract franchisees interested in financial services.
It says the combination of a growing economy and an increasing aversion to bank lending amongst Scottish SMEs makes Scotland an ideal market for IFG, which buys invoices on an ‘as-you-need -it basis’ from businesses, allowing them to access capital for their businesses without taking on external debt.
Government figures show that approximately 40,000 new businesses were launched in the past two years.
Meanwhile the Scottish Government’s 2014 SME Access to Finance Report, revealed that 70 percent of Scottish SMEs plan on becoming permanent non-borrowers (PNBs) in the future.
Tomorrow’s event – entitled ‘The Boom of Alternative Financing in Scotland & the Inside Story on Invoice Discounting’ – will offer an insight into the changing ways businesses approach finance, the need for greater flexibility in the financial services sector and the huge market opportunity that exists for people interested in a career in spot factoring.
John Mellor, CEO of IFG UK and former head of client relations at RBS Invoice Finance, will also conduct a Q&A session with attendees to provide greater clarity on the rapidly-evolving industry.
Since 2012 the alternative finance industry, which encompasses services from peer-to-peer lending and crowd funding to invoice discounting and spot factoring, has more than doubled year on year in the UK.
This year it is expected to total nearly £7 billion as the need for non-traditional finance continues to increase, demonstrating that the sector continues to grow strongly.
David Banfield, president of IFG, said: “Scotland represents a key market for us, and we want Glasgow to be the hub for all activity in the region. Glasgow’s diverse and growing economy makes it an ideal destination to establish IFG. Quality customer service has been instrumental in our success to date, so finding the right franchisees to act as our feet on the ground remains our biggest priority.”
IFG operates across the USA, Canada, Africa and Europe. Since launching in England in 2010 it has bought thousands of invoices from British SMEs.
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