Business Blog
Posted on 02 May, 2011How popular is Invoice Finance?
The current invoice finance market
Invoice Finance has grown from about 13,000 UK companies using this type of funding facility in 1995 to over 50,000 companies today.
The figures for 2010 from ABFA (The Asset Based Lending Association) showed that invoice finance lending grew by 8% with SMEs borrowing £14.9bn, up £1bn on the previous year.
The Q4 2010 statistics shows a rise in turnover for firms using invoice finance of 10% year on year.
This is broken down to a 9% rise for invoice factoring and a 10% rise for invoice discounting.
Although Import factoring and export factoring showed a 5% and 18% fall respectively, export invoice discounting showed a 35% rise, for sales values.
The above figures should be considered in conjunction with the fact that the number of clients lost in Q4, 2652 was larger than the number of clients gained in Q4, 2358
Overall the figures show increased lending for invoice finance, increases in the turnover of businesses using invoice finance and that there is still a significant number of businesses taking on invoice finance as part of their funding structure.
Invoice finance market predictions
The invoice factoring and invoice discounting market is expected to show continued growth for 2011 and beyond.
The tightening of lending criteria by the high street banks and their aversion to overdraft lending is expected to force UK businesses to look at alternative funding solutions.
Invoice finance is an effective method of funding working capital and many businesses may switch directly from overdraft facilities to invoice factoring and invoice discounting solutions.
Businesses will also find the flexibility of invoice finance attractive along with the fact that it can be used in conjunction with other forms of business funding.
Smaller businesses may also find the option of outsourcing their debt collection and ledger management a desirable cost and time saving alternative to using in-house resource.
About us
The invoice Finance Company is one of the UK’s fastest growing independent finance brokers. We do not charge for consultations, advice or financial assessments, so if you would like to find out more about invoice finance including invoice factoring and invoice discounting feel free to call us on 0845 459 7504 or email us at info@invoice-finance-uk.co.uk
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What our customers say
"We found The Invoice Finance Company to be absolutely terrific. They arranged an invoice factoring deal for us quickly and efficiently. Would certainly recommend them"
David Livingstone, Operations Manager, Aspect Work at Height Ltd
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