The sight of banker bonuses in the news again will do little to ease the concerns of small business owners that must also read of a new Bank of England report showing that SMEs are still finding it hard to get access to credit. As people are unwilling to abandon high street banks, what’s the answer? Is it combining traditional SME finance services with invoice finance?

New information has hit the headlines showing that the average salary for over 1,200 senior staff at eight city banks in 2010 was £1.8 million. It has appeared at the same time as a report from the Bank of England showing that SME lending is continuing to contract. According to the Trends in Lending report, lending to smaller businesses shrank by 6.1% for the year to November 2011.

That the payment of millions of pounds to senior bankers at a time when many SMEs are fighting for their lives will grate, particularly with owners and employees of the latter companies, goes without saying. So, what can these businesses do?

It would seem that changing bank isn’t an option. A new study shows that Britons are reluctant to shift allegiances despite poor service. Based on these findings, it is hard to imagine small business owners jumping ship from a high-street lender to an alternative source of SME lending, such as invoice discounting, factoring or asset finance. But, perhaps the answer lies in combining the two elements of SME finance provision.

Rarely is putting your eggs in one basket a good idea and so it goes with small business credit. Invoice finance is an SME finance facility that complements traditional SME lending services, so with banks unwilling to give much ground in terms of SME lending, perhaps it’s time for companies to overhaul their SME credit strategy.

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