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