Invoice Discounting

Invoice finance industry forecasted to grow by 9% in 2012

The asset based finance industry, which includes invoice finance, is set to grow by 9% in 2012, according to a new survey by the Asset Based Finance Association (ABFA).

It is expected that total funding provided to clients with invoice finance facilities will exceed £17bn in 2012, with invoice finance companies set to turnover £259bn, up 12% from £235bn in 2011.

7% more businesses will use invoice finance in 2012, peaking at 44,412 firms with live invoice finance facilities, which includes factoring and invoice discounting.

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.

More government backing urged for non-bank finance

With small firms still struggling to access bank finance despite widely-publicised initiatives such as Project Merlin and increasingly vocal backing of small businesses, the Federation of Small Businesses (FSB) has urged the UK government to promote imaginative non-bank finance solutions, such as invoice finance, to help finance the economic recovery.

The FSB’s latest report entitled ‘Alternative Finance: Small firms and access to finance’ discusses the way in which other countries have seen success from varied and local routes to finance.

Alternative forms of financing favourite for UK start-ups in 2012

Start-ups in the UK are increasingly more likely to take up alternative finance solutions in favour of traditional bank facilities, according to a new survey by Huddlebuy.co.uk

The business deal finder website asked 1,000 small business owners about funding plans for 2012, with a massive 65% planning to approach alternative financing entities in 2012.

Young entrepreneurs were even more likely to consider alternative financing, as three-quarters indicated it as their preferred solution for the upcoming year.

Over 300k jobs could be created through greater uptake of alternative funding

New research has revealed just how big a role alternative funding sources play in keeping the UK’s economy going, and how much further it could go in helping the economy to achieve growth.

Increased use of accounts receivable finance (which includes factoring and invoice discounting services) by the UK’s SMEs could provide enough funding to create approximately 311,000 new jobs by the year 2020, according to the new report commissioned by financial services provider GE Capital.