Invoice Finance is a growing field across the world
Many people still believe that Invoice Finance is an unpopular and little used product.
The popularity of invoice finance varies across the world, and there are no specific global statistics on its usage. However, here are some insights into the popularity of invoice finance in Australia and other regions.
Australia:
According to the latest data from the Debtor and Invoice Finance Association (DIFA), invoice finance is a popular funding solution for Australian businesses. The data shows that invoice finance facilities in Australia grew by 6.8% in 2020, with the total value of invoices financed reaching $78.9 billion. There was also an increase in the number of businesses using invoice finance by 3.3% to 4,210, which indicates that more businesses are recognising the benefits of this funding solution.
United Kingdom:
Invoice finance is a widely used funding solution in the United Kingdom, with more than 44,000 businesses using invoice finance services in 2019, according to UK Finance. The total amount of funding provided through invoice finance in the UK was £23.4 billion in 2019.
United States:
According to a report by the Commercial Finance Association, invoice finance is a growing industry in the United States, with a total volume of $3 trillion of accounts receivable financed in 2019. According to the same report, invoice finance has experienced a compound annual growth rate of 9.4% over the past five years.
Europe:
According to a report by the European Central Bank, invoice finance is a popular funding solution for European businesses, with the total value of factored invoices reaching €1.5 trillion in 2019. The report indicates that invoice finance is particularly popular in Southern and Eastern Europe.
Invoice Finance is known by many different terms such as: debtor finance, invoice finance, invoice factoring, debt factoring, invoice discounting, cash flow funding. When it comes to unsecured business loans and business finance, invoice finance is widely used around the world.
There are other factors at play when it comes to the power of invoice financing.
These factors include the changes to the government and economic issues on both a local and global level.
Some of the factors that Australian businesses are facing include the rising interest rates, the ATO chasing SME arrears, the end to Covid stimulus spending, the battle to control inflation and a range of other economic factors. It’s no surprise that there has been a noticeable increase in SMEs searching for cashflow solutions.
The expectation is that Australia will see significant growth in invoice finance usage over the next five years.
This is why businesses are turning to experts in this specialised financing option. Making more of your cash flow is possible with the right help behind you.
That’s the difference when you deal with the team at Invoice Money. You have experts who clearly understand that the largest asset in most SME balance sheets, and the one that fluctuates the most in line with sales activity, is your outstanding debtors’ ledger.
This can offer you opportunities to make more of your business finance when you need to change your cash flow situation.
We have the experience to help support SME growth by offering a diverse range of debtors’ based finance facilities to our target SME clients. These are all tailored to suit whatever your cash flow requirements are on a single invoice, selective, continuous or confidential basis.
Having an experienced team who can take you through the process step by step is one of the most valuable assets to your business.
There is an effective and efficient way to help sustain your cash flow and meet your business funding needs. See Invoice Money today and make more of your financial future. You can Contact Us now.