Reward Finance Group has replaced its Invoice Finance Plus product with ‘Asset Based Solutions’ as it aims to simplify its offering to SMEs.

The group said it felt that traditional invoice finance was too restrictive, with over complicated fees and charging structures.

Although invoice finance releases a percentage of funds from unpaid invoices, in many cases this does not fully meet the total working capital needs of the company and, therefore, further lending needs be arranged under different agreements.

With Reward’s ‘Asset Based Solutions’, SMEs can borrow from £100k to £5m, for a minimum term of 12 months, against a range of assets.

There will be one simple daily interest payment, while revolving credit facilities can be interest only, or capital and interest, with a bullet repayment at the end of the term.

Typically, Reward will be lending up to 90% against debtors, 80% against residential property, 70% against commercial property, 60% against plant & machinery, with stock reviewed on a case-by-case basis.

Nick Smith (pictured), Reward’s group managing director, said: “Our Asset Based Solutions product is aimed right at the heart of SMEs that need working capital solutions to fund the business. It is uncomplicated and all tied up in one set of legals.

“Unlike invoice finance, which requires minimum income and has a disbursement list which reads like War & Peace, there will be no hidden and complex charges. Instead, there will be just one simple daily interest payment.

“The product enables borrowers to leverage multiple assets, personal or business, and package them up in one easy solution, with one repayment and one legal agreement. By simplifying matters, we are confident ‘Asset Based Solutions’ will be welcomed by both our introducers and their clients, as they will just pay for what is borrowed and that’s it, which is surely the way it should be.”