Yorkshire Bank will use ring-fenced cash to support firms struggling with late payments

Yorkshire Bank says firms in the region face a seven week wait for monthly invoices to be paid during the tough economic climate.

The bank, which has branches in Darlington, Bishop Auckland, Stockton, says the economic downturn has hit construction companies hard, with firms on shorter credit periods, such as fuel providers, also struggling.

The bank has now ring-fenced £100m from its £1bn Business Expansion Fund to help smaller companies.

Martin Rothera, head of invoice finance at Yorkshire Bank, said: “Late payments can put immense pressure on small businesses as cash flow dries up, leading to pressure on their ability to pay their own bills.

“This £100m fund underlines our enduring commitment to the invoice finance market in the current tough business climate and will provide real support for many businesses which face difficulties through no fault of their own.

“Providing an invoice finance service is a key part of our support for North-East businesses, particularly those which are working harder than ever to compete in some very challenging economic conditions.”