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More Businesses Discover Invoice Financing
 In
the first three months of 2006, the number
of small businesses using invoice finance
has grown considerably. The speed and low
cost of invoice financing (such and
Factoring and Invoice Discounting) is making
it more and more popular with small and
large businesses alike.
The FDA (formerly the Factors and
Discounters Association) have released their
figures for the first quarter of 2006, and
as well as a 17% increase in total invoice
financing; they show a 7% increase for
businesses with under £500,000 turnover.
This proves again that invoice finance is
not just for large businesses, and everyone
from established SME’s to new micro
businesses can benefit.
Manufacturers and services are by far the
two biggest users of invoice finance,
followed by distribution and transport
services. The FDA’s results also show that a
small number of retail and construction
businesses are starting to take advantage of
invoice finance; two sectors that previously
been very uncommon users of the services.
The benefits of invoice financing for
reducing the risks of late payment are also
growing, with statistics showing that the
average number of debtor days outstanding
for both factoring and invoice discounting
has gone down from 58.9 days to 57.9 days.
If your business has not yet discovered the
benefits of invoice financing, why not find
out whether our factoring and invoice
discounting services could benefit you?
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