- 20 Feb
54% of Factoring & Invoice Discounting Users Think Businesses Use Overdraft Because They Don't Know About Invoice Finance
We surveyed a sample of businesses (84) that use various forms of invoice finance such as factoring and invoice discounting and we asked them why they thought more businesses use overdraft than invoice finance. These were the answers that they gave:
- 53.6% thought it was because businesses haven't heard of invoice finance or don't know about it
- 22.6% thought it was because businesses don't realise the benefits of invoice finance
- 19% said overdraft was standard/offered by the banks
- 4.8% thought those businesses didn't have any cash flow problems so could manage with an overdraft
This is a very positive reflection on invoice finance as the majority of existing users surveyed implied that if businesses were more aware of invoice finance they would use it instead of overdraft.