In such a chaotic economic climate, there are many financial facts and figures floating around. Sometimes it’s hard to get your head around them, especially when it comes to finance solutions from the banks which can be confusing and unclear. So, we’re gathered up a few facts and figures for the invoice factoring sector, which puts the popularity of this finance solution into black and white.
- In 2010, across the whole of the invoice finance industry, over £200bn was provided to businesses through factoring or invoice discounting. This is a figure that’s continuing to grow across all sorts of markets.
- All in all, to the present date there have been five quarters of consecutive positive growth in the amount of invoices released to factoring lenders.
- Between 2006 and 2010, the amount of funding through invoice discounting grew by 22%. The asset based lending industry as a whole also grew by 11%.
- By the end of 2010, there were 18,894 businesses using factoring and 17,466 businesses using invoice discounting services. This more than anything shows their popularity across huge numbers of clients and business sectors.
- One of the sectors in which invoice financing is the most popular is within manufacturing, which accounted for 31% of clients as of the end of 2009. In 2010, of the £180bn funded through invoice factoring, a large percentage of them were manufacturing clients.
These figures come from the latest report of the Asset Based Finance Association, a group made up of the most respected factoring lenders in the country. The facts here show this is one means of business finance that is looking to grow, with even more businesses using the service as they become more aware of their options outside of bank loans and overdrafts.
With the government already backing invoice finance to be a key provider to small businesses during economic recovery, these figures show that it is already growing and looks to be doing a good job filling the gap in bank funding. Secure, flexible and accessible, invoice discounting and factoring have helped many thousands of businesses and will surely help thousands more.