- 11 Mar
Dawn of the
An interesting post in the Times Online today "Welcome to the era of no money".
It seems like at last the inevitable for our economy has become apparent, the "consumer spending era" cannot continue indefinitely (surprise, surprise!) despite the current desperate attempts to spend our way out of recession.
The high levels of consumer spending that have fuelled our economy have been supported by the availability of easy credit and ever rising house prices which created a feeling of "economic super-confidence". Suddenly that super-confidence has collapsed and the era of consumer spending has come to an end. Now follows the "era of no money" which is inevitable and unavoidable to restore balance to our economic finances.
I think that the factoring industry is going to come into its own during this period. Already we are seeing dramatic increases in the levels of new factoring enquiries coming through and there is going to be an increasing tide of businesses turning to sources of finance such as invoice finance, that will remain more accessible as they are based on tangible security, such as outstanding sales invoices, rather than just "economic super-confidence".