Can my business afford not to use debtor finance?
Debtor finance is a proven solution for businesses that want to focus on their core products and services without having to worry about cash flow. It is made even more appealing as in the majority of cases the only security required is business to business invoices. It is an industry that has gone from strength to strength and will continue to grow as more and more businesses realise its potential, particularly in the current economic climate.
A recent article by Business Review Weekly (April 2013) highlighted the growth of debtor finance:
Two decades ago, only businesses on their last legs would have ever considered debtor finance as a funding source but this has changed and it is now considered a legitimate way to finance and grow a business. It is particularly appealing to certain industries such as manufacturing, agriculture and mining, wholesale trade, construction, transport and storage and labour hire markets, which have traditionally extended longer payment cycles to their clients, tying up the funds that make it hard to grow a business.
Figures released by the Debtor and Invoice Finance Association (DIFA) state that this financial arrangement is propping up the country's SME sector. Its figures show that overall debtor finance provided to businesses in the 12 months to December 2012 totalled $63.3 billion, an increase of 3.2% on the 12 months ended December 2011 and up 2.9% on the September 2012 quarter.
"Debtor finance in Australia is following growth trends witnessed in other developed economies across the globe, providing financial solutions that alleviate cash flow issues that impact so many businesses" said the chairman of the DIFA.
Source Business Review Weekly - Read full article > >
