European invoice finance market worth over €1 trillion

Invoice finance across Europe has become an increasingly popular source of working finance, according to new research from Demica, which shows the market is now worth over €1 trillion.

The market was worth €991 billion in 2010 and €844 billion in 2009, which constitutes an annual growth rate of over 10%.

The view of the top 50 banks in Europe were aggregated together with a wide range of third party data for the research, as it was acknowledged by the report that invoice finance offers fledgling and low-rated businesses affordable, accessible funding solutions.

Phillip Kerle, Chief Executive Officer of Demica, commented on the research findings, “As tight conditions persist for traditional lending, invoice finance – in its various forms - has stepped up to the plate to fill the funding gap.”

“We believe that this is the first time that the invoice finance market has been viewed as a whole, and our report has demonstrated its economic significance in Europe, playing a vital role in funding economic recovery at a time when bank credit continues to undergo a substantial ‘squeeze’,” he concluded.