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Factoring in the UK: Market Research Report

Market Research • Market Size • Industry Statistics • Industry Analysis • Industry Trends

Factoring Market Research Report | SIC K64.992 | Mar 2017

Important factors: Operators have benefited from high business confidence and changing legislation

IBISWorld’s Factoring market research report offers insightful industry analysis and research into the market at the national level. IBISWorld’s in-depth industry market research is presented in a logical and consistent format. The industry report contains key industry statistics, market size, industry trends, and growth and profit forecasts for a 5-year outlook period.

Report Snapshot
Market Share of Companies
Bibby Financial Services Ltd Bibby Financial Services Ltd market share
HSBC Invoice Finance (UK) Ltd HSBC Invoice Finance (UK) Ltd  market share
Lloyds TSB Commercial Finance Limited Lloyds TSB Commercial Finance Limited market share
RBS Invoice Finance RBS Invoice Finance market share
Industry Statistics & Market Size
Revenue
£3bn
Annual Growth 12-17
3.8%
Annual Growth 17-22
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Profit
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Employment
5,764
Businesses
82
Industry Analysis & Industry Trends

Factoring is a short-term financing option to increase a business' liquidity. Operators also purchase accounts receivable and unpaid invoices at a discount in return for immediate receipt of money. Industry revenue is expected to grow at a compound annual rate of 3.8% over the five years through 2016-17. Over the past five years, demand for factoring services has been propelled by difficulties in securing conventional loans. Improving economic conditions, rising business confidence and an expansion in UK business numbers also contributed positively to the industry's performance. However, difficulties associated with adequate funding, strict lending criteria and the low interest rate environment constrained growth.

In 2016-17, revenue is expected to rise by 2.5% to £2.7... purchase to read more

Industry Report - Industry Products Chapter

The Factoring industry supplies liquidity to businesses by using invoices and debtor balances as the security to provide short-term financing. Many businesses experience a delay between the time they render services or deliver goods to their customers and the time they receive payment. In some cases, the invoices they issue to customers can represent two to three months' sales. As a result, businesses can encounter liquidity and cash flow issues that the Factoring industry works to resolve enabling a quick capital injection without sacrificing equity.

Invoice discounting

Invoice discounting is a form of short-term financing that businesses use to improve their cash flow. Onc.. purchase to read more

 


Industry ProductsRelated ReportsTable of Contents

What is the Factoring Industry?

Firms in this industry specialise in short-term debt financing and invoice discounting. Factoring involves a company selling its accounts receivables or invoices to a third party as a means of accessing cash to finance further business activity without having to wait for their debtors to pay them. Operators generate revenue through factor fees, or the difference between the price paid for the invoice and money received from debtors.

Industry Products
Domestic factoringInvoice discountingAsset-based loansOther factoring and related services
 
Industry Activities
FactoringInvoice discountingDebt financing


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