Finance firm launched for SMEs

A finance company is being launched aimed at smaller companies, amid research showing they are still having problems accessing funds.

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New firm Fleximize plans to lend to organisations that have been rejected by banks

Fleximize said it planned to lend to many of the organisations that have been rejected by the banks.

Companies will receive funding in exchange for a fixed percentage of gross revenues.

Max Chmyshuk, founder of Fleximize, said: " We feel that our revenue-based financing solution is significantly less risky for a business than other forms of more mainstream financing usually involving fixed regular repayments.

"Many strong and sound businesses are finding it very difficult to secure funding from banks.

"Our analysis of industry data reveals that in 2007-2008, around 15% of business overdraft applications and 9% of requests for loans from small to medium-sized enterprises were rejected by banks. Alarmingly, the corresponding figures for 2011-2012 were 19% and 23%."