• How Important It Is To Compare Factoring Prices

    We have updated our mystery shopper research, in order to compare factoring prices between different providers.


    You can check your pricing against our panel of providers.


    Interesting results, there is a huge pricing differential between the top and bottom of the table.

    Compare Factoring Prices

    We found that the range of costs quoted (estimated service charge and discount charge combined, based on a small factoring client) revealed a difference in pricing of 165% between the cheapest price, and the most expensive that we were quoted.

    This means that the highest pricing was approximately 2.7 times more annually, than the lowest price - a huge difference.

    The graph to the left shows each factoring companies combined service charge and discount charge pricing, with the total estimated cost (based on assumptions about the level of borrowing etc.) on the vertical axis, this visually demonstrates the substantial difference between the lowest and highest quotes.

    Need an explanation of how the costs of factoring work?

    The line also shows that it is not a case of most quotes being similar, and just one or two being at the extremes. In fact is shows that there were steady incremental pricing increases between the lowest and the highest quotes.

    Comparing Service Charge

    Looking at just service charge, the range was even bigger. There was a 203% difference between the cheapest factoring company, and the most expensive.

    This only goes to demonstrate how important it is to search for factoring quotes, before you commit to a particular provider.

    Other Things To Consider

    There were a number of other differences that were highlighted by our study:

    1) Mimimum Fees

    In some, but not all cases, there was a minimum service charge quoted. This can be a charged if your business fails to achieve the level of factored turnover anticipated.

    2) Minimum Base Rate

    In some, but not all cases, there was a minimum base rate quoted. That means that even if base rate is low, 0.25% at present, you can still be charged a higher rate because of the minimum set in the agreement. This could be several percentage points higher, and is charged in addition to the discount margin.

    Need Help Finding Quotes?

    If you need help finding the best factoring quote for your circumstances please either contact us or speak to Sean on: 03330 113622.

    Share with:

Comments (2 comments)

Jeffrey Burton

"Glenn, An interesting subject. However factoring prices should take into account risk. With over 30 years running non-standard factoring companies I concede we will be at the expensive end of your graph. A typical client will have no net worth and we have to rely on written invoice verification and often have to deal with requests for overpayments because of the weakness of the client and so resulting in a heavy workload justifying the cost."

12:00 - Sunday January 22nd, 2017

Glenn Blackman

"Jeffrey, thank you for your comment. This particular study focused purely on the differences in pricing between factoring companies and I have had a few comments about the other factors that need to be taken into account in making a decision about how to choose between providers e.g. service levels. You are also quite right that the cost often needs to reflect the fact that many clients don't have any other security to offer beyond the integrity of their book debts and so I understand the need to charge for that risk taking."

12:00 - Monday January 23rd, 2017

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    These were the top 5 reasons that clients gave for moving to their existing invoice finance company from another provider - research results from our market research survey of 100 existing invoice finance users. These answers accounted for 80% of the responses:By far the key reason for moving invoice finance companies is cost savings - moving between providers for cheaper invoice finance deals....

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    Average Time Using Invoice Finance Is 5.28 Years

    On average businesses said they had been using invoice finance for 5.28 years.We have just completed our new survey of 100 randomly selected existing users of invoice finance. We asked them a number of questions about who they used, what they thought etc and one of the first questions was "how long have you been using invoice finance". The average time was 5.28 years - longer than we had...

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    Research Expects Growth

    Interesting findings from a piece of research conducted by an invoice finance company recently. They found that 69% of the businesses that they spoke to were expecting pro active growth in the not too distant future. A very positive sign for the UK economy. This is also good news for the UK invoice finance industry as there is a close association between high-growth companies and a high uptake...

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    New Article Disadvantages Of Bank Overdraft For New Start Ups & The Alternative

    This article describes the research we conducted amongst a sample of new start up businesses. It highlighted some disadvantages of using bank overdraft. Despite bank overdraft being the most popular form of finance for start ups with over half of them using it, nearly half of those experienced funding restrictions.Read the full article here: Disadvantages Of Bank Overdraft For New Start Ups And...

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    Reasons Why Fast Growing Businesses Miss Out On Invoice Finance

    This is a summary of the reasons non users of invoice finance (84% of 100 high growth companies) gave for not considering invoice finance as a funding option for their high growth business (20%+ growth pa - note these values are rounded hence the total):...

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    Why Fast Growing Companies Are Missing Out On Available Finance

    This article explains recent research conducted into the finance requirements of high growth companies (20%+ pa) and it identified the reasons why very few fast growing companies are finding their way to invoice finance as a funding source.The key reasons were "invoice finance not being mentioned as an option" by the bank, accountant or advisers and "not knowing what invoice finance was". These...

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    Only 5% Of High Growth Companies That Didn't Use Invoice Finance Considered It As An Option

    Another result from our survey of 100 high growth businesses (20%+ growth pa). As previously reported 12% of our sample used invoice finance and we asked the remaining 88% if they had considered using invoice finance to funding their high growth business.Only 5% of the fast growing businesses that were non users (the 88%) had even considered invoice finance as an option - many of the reasons for...

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    The Consequences Of Insufficient Funding To High Growth Companies

    When we surveyed 100 high growth companies we identified 59% of them that said that they had not had access to sufficient finance and funding to support their growth rate (growing faster than 20%+ pa). We went on to question them about the consequences of that lack of funding and these were their responses:...

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    52% Of Maximum Growth High Growth Companies Use Invoice Finance

    That might read like a strange title but let me explain!In our study of high growth companies (20%+ growth pa) we identified 79% that said that with more funding they could grow even faster. That leaves 21% that said that they couldn't increase their growth rate even with more funding. We analysed that 21% of "maximum growth" businesses and we found that 52% of them used invoice finance to fund...

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    79% Of High Growth Businesses Want More Finance For Additional Growth

    We recently surveyed 100 high growth businesses (defining high growth as 20% or more turnover growth in the last year). We asked them: "If you had more finance available to your business could you increase your growth rate even further?". The answer was unanimous - 79% of those fast growing businesses said that they could increase their growth rate even further if they had access to further...

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    UK Invoice Finance Research Group Reaches 700 Members

    The UK Invoice Finance Research Group which I started on LinkedIn.com has reached the 700 member mark.The group is a platform for sharing research findings related to the invoice finance industry with the objective of expanding the market penetration of invoice finance products such as factoring and invoice discounting.There are numerous historic discussions on the groups forum that you can read...

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    High Growth Companies Are 43% Short Of The Funding They Require

    I recently reported that 59% of the 100 high growth businesses (turnover growing by more than 20% over the last 12 months) we interviewed said that they had less funding than they required. These businesses were using a combination of overdraft, loan and family money to fund their businesses. We went on to ask them how inadequate their funding was.On average these high growth businesses that...

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    48% Of Loan Funding To High Growth Businesses Is Inadequate

    Our survey of high growth businesses recently revealed that 59% of them did not have enough funding and we went on to ask those what type of funding they were using.The results were as follows (note one respondent could use multiple sources of finance):This clearly demonstrates that invoice finance is highly suited to funding high growth businesses where traditional funding sources such as...

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    59% Of High Growth Companies Don't Have Enough Funding

    Further results from our market research survey of 100 high growth companies (turnover growing at 20% or more per annum).59% of fast growing businesses said that they did not have enough funding to support their current growth rate. Amongst those businesses that did not have enough funding, none of them was using invoice finance (factoring & invoice discounting).All 12 of the respondents that...

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    Recruitment Sector Features In High Growth Sector Survey

    Staff recruitment businesses, both temporary staff hire, permanent placements and sector specific recruiters featured heavily in our market research survey of fast growth UK businesses.The list was compiled by calling a randomly selected database of businesses until 100 were identified for interview, all with annual turnover growth rates of at least 20%.Within that list recruitment was the most...

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    59% Of Fast Growth Businesses Don't Have Sufficient Finance

    The available finance is not enough to support many high growth UK businesses. In our recent market research survey of 100 fast growth businesses (high/fast growth being defined as 20%+ turnover growth in the last year) we found that a staggering 59% of respondents said that they had not had sufficient finance to support their current growth rate.Worrying news for the UK economy when you couple...

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    High Growth UK Businesses Survey Results - Higher Proportion Of High Growth Businesses Use Invoice Finance

    Our market research survey of "high growth UK businesses" follows on from the series of business segments that we have surveyed recently. Our sample for this survey was a group of 100 fast growth businesses i.e. businesses that had grown their turnover by 20% or more over the last year.The average growth rate across the respondents was 37.5% with the lowest being 20% and the highest 75%.We asked...

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    New Start Ups Don't Realise Invoice Finance Is A Funding Option

    Our recent survey of 100 new start up businesses found that 31% were unable to raise all the funding that they wanted but none of those with funding restrictions considered using invoice finance. Their reasons for not considering invoice finance, given by the 31 respondents that couldn't get enough funding, were as follows:...

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    Membership Of An Industry Body On Your Website Increases The Liklihood Businesses Will Buy From You

    More results from our research into online buying behaviour amongst businesses purchasing from finance related websites. We asked if various items being present on a business' website increased the chances of businesses purchasing from that business. 35% of respondents (100 randomly selected businesses) said that they would be more likely to buy from a business that was a member of an industry...

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    87% Are Not Swayed By Celebrity Endorsements

    We have conducted a lot of market research into online web related buying habits in order to improve our own.Another statistic from our market research survey of 100 SME businesses. We asked them if they thought that businesses were more likely to buy from companies that had celebrity endorsements on their website. 87% said they would not be more likely leaving just 13% that would be more likely...

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    Full List Of Advice For New Start Up Businesses From Business Owners

    This is the complete list of advice for new start up businesses, from business owners based on our survey of 100 new #startup businesses:...

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    4 More Pieces Of Advice From Business Owners For New Start Up Businesses

    Below are 4 more pieces of advice from our #startups market research survey, from business owners for people starting their own new start up businesses. These follow on from the top 3 pieces of advice published previously:The remainder of the results from the start ups survey will follow soon....

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    Top 3 Pieces Of Advice From Business Owners For New Start Ups

    As part of our #startups survey we asked 100 new start up businesses: "If you could give someone starting a new business one piece of advice what would it be?".The top 3 pieces of advice for new start ups, from business owners, were as follows:I will publish the remainder of the advice for new start ups from business owners shortly....

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    Business Growth & Alternative Funding Discussion

    I was invited to this morning's round table debate "Big Opportunities for Business Growth", which which I attended.It was an interesting debate that encompassed:The essence of the discussion was that it is down to everyone to seek growth. Businesses for their own sakes but also the government to incentivise and encourage growth and a positive culture for business in general. There seemed to be a...

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    Roundtable Discussion

    I have been invited to attend a round table discussion regarding "Big Opportunities for Business Growth".I have also put forward the following question should there be time to address it:A POSSIBLE QUESTION FOR DEBATEOur recent survey of 100 businesses showed that:In previous of our surveys:Question:In view of the lack of access to funding that UK businesses continually report, how can the low...

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    We Found 92% Of Our Prospects The Funding They Wanted

    I have read recently a number of statistics about businesses being unable to access sufficient funding, for example:A range of between 31% and 77% being unable to access the funding that they needed depending on which survey you look at.We therefore reviewed the last 50 new prospects that we have dealt with in order to see how many we were able to find funding for.This is a far better performance...

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    Deal Completed - CHOCS For A Business Refused An Overdraft Extension

    We were recently able to help a small business that were looking to grow but had been refused an extension to their limited overdraft by their bank. The bank had recommended their own invoice financing division but we were asked to introduce them to some alternative invoice finance companies and we were able to find them a CHOCS facility that would provide the additional funding for growth.CHOCS...

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    Additional Support & Advice That New Start Up Businesses Want

    We asked 100 new start up businesses what additional support and advice would have helped them when they first started their business.Of the 32% of start ups that said they wanted more support and advice, this was what they asked for:...

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    New Starts Want More Support Advice & Help From Their Bank But Haven't Considered Invoice Finance

    32% of new start ups that we interviewed (from a sample of 100 new start businesses) said they would have liked more support and advice when they started their new business.Of those, nearly 41% said that they wanted more support from their bank.When we looked at the other answers from that 41%, all of them said that they were unable to raise enough finance when they first started and in all cases...

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    The Start Ups With Funding Restrictions Used Either Overdraft Or Family Money - Not Invoice Finance

    In our recent survey of 100 new start up businesses we found that 31% of our sample said that they couldn't raise all the funding that they wanted initially.74% of those start ups that couldn't raise enough funding initially were using bank overdraft whilst the remaining 26% were either using their own or family money. None of these respondents that were unable to raise enough funding were using...

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    Invoice Finance Can Provide More Adequate Start-up Funding Than Overdraft

    Continuing to share the findings of our survey of 100 randomly selected new start-up businesses, we asked them if they were able to raise all the funding that they wanted initially, when they first started business.Of the 52% of new start-ups that said they used overdraft, 44% of those said that they were NOT able to raise all the funding that they wanted initially, but unfortunately none of that...

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    17% Are More Likely To Trust A Business Finance Website That Ranks Highly In Search Engines

    Continuing to build on the results from our survey of 100 businesses about what establishes trust with a business finance website, nearly 17% of the responses to the question we posed about what makes businesses trust business finance websites were that they rank well in search engines!High rankings in a search engine seems an odd way to determine whether a webiste it trustworthy, and it probably...

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    32% Of New Start Businesses Used A Bank Loan To Fund Their New Business

    So in addition to the 52% of new start businesses that used a bank overdraft to fund their business, a further 32% of the 100 respondents to our market research survey of new start-up businesses used a bank loan for their initial funding.In total that is 84% of new start up businesses that were using some form of traditional bank finance in order to fund their startup.There are some very...

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    52% Of Start-ups Said They Used Overdraft To Fund Their New Business

    More results from our market research survey of 100 start-up businesses. We found that 52% of the startups that we interviewed said that they used a bank overdraft to fund their new start business. Interestingly that figure is lower than the number of businesses that we have found to use overdrafts generally in previous surveys (we previously found that 88% of businesses said that they had a bank...

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    14% Of New Startups Use Their Own Cash Or Family Money To Fund Their Business

    It might well be the cheapest form of funding - to use your own cash or family money, but 14% of the startups that we interviewed said that they used either their own money or family money to fund their new business initially. It is probably a good way to keep costs down, assuming your family are not charging you to borrow the money!However, you also have to factor in the loss of any return on...

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    Confirmed - Awards Make Businesses More Likely To Buy From Your Website

    In our market research survey of 100 SME businesses we asked them about their buying behaviour from finance websites. One question we posed was "If the following things appear on a company website do they make you more likely to buy from the business?" - we then asked them to answer that question in respect of "Awards".The result was the a unanimous 100% of respondents said that the presence of...

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    Only 2% Of New Startups Used Invoice Finance To Fund Their New Start Business

    In our recent survey of a randomly selected sample of 100 new start businesses only 2% said that they actually used invoice finance to fund their start up business.As I have posted previously, only 4% of those startups that we surveyed said that they had even "considered" invoice finance and of those that didn't consider it, 39% of them said they didn't consider invoice finance as they didn't...

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    Startups Just Don't Know That Invoice Finance Is For New Start Businesses

    Yesterday I revealed that a startling 96% of new startups didn't consider invoice finance to fund their new start business. We then went on to ask them why they didn't consider invoice finance as an option.The top answer given by 39% of respondents that didn't consider invoice finance was that they "didn't think invoice finance was an option for start ups".This shows a real lack of understanding...

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    96% Of New Startups Don't Even Consider Invoice Finance As A Possible Funding Source

    I have new results just in from our new business start-ups survey. We interviewed 100 new start businesses about how they funded their business. The target list were all businesses that were recently started but without any propensity towards the use of invoice finance i.e. a generic list of recent new start businesses.We asked a number of questions and I will share their responses over time but...

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    Customer Recommendations & Testimonials Are The Most Important Factor In Making Customers Trust A Finance Website Online

    With our latest market research survey we have taken a slightly different tack and questioned a random sample of 100 businesses about their use of finance related websites online.The first question we asked them was: When a business visits a finance related website what do you think makes them more likely to trust that business? We then went on to ask them if there was anything else that would...

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    Free, Independent Invoice Finance Search Service To Introduce To Clients Of Accountants, Advisers & Consultants

    Our research amongst accountants found that most accountants can appreciate the benefit of offering our free, independent quotation search for invoice finance to their clients. We are happy to offer this service to your clients in partnership with you if you are a firm of accountants, advisers, consultants or similar.Our findings were that approximately 15% of accountants regularly referred...

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    Only 14.7% Of Construction Businesses Raise Applications For Payment And Wouldn't Benefit From Them Being Funded

    Our #constructionfinance survey of 100 construction sector businesses identified only 14.7% of construction businesses that raise applications for payment didn't think they would benefit from having funding against them - a very small percentage, highlighting strong demand for funding from this sector.However, of this segment - 64% of them said they could forsee the need to raise business finance...

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    UK Invoice Finance Research Group Has 600 Members On Linkedin

    Anyone who is anyone within the invoice finance arena should join the the UK Invoice Finance Research Group on Linkedin - its completely free and it shares and discusses research findings relating to the future of the invoice finance, factoring and invoice discounting industries. You can use our research findings to better understand what invoice finance customers really want and use it to shape...

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    Businesses Need £43.2K Funding To Grow More Than 14.6% This Year

    A while back we reported the results of our research study amongst 100 randomly selected SME businesses. They said that on average they expected to grow by 14.6% over the next 12 months.We then asked them how much additional funding they would need within their business to exceed their projected growth figures. On average they said they would need an additional £43,200 of additional funding in...

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    19% Of Construction Businesses Have Had An Invoice Finance/Applications Finance Quote

    Of the 100 randomly selected construction sector businesses that we interviewed in our #constructionfinance survey only 19% said that they had ever received a quote for construction finance either in the form of invoice finance or finance against applications for payment.Of those 19 - 2 had subsequently taken up a facility - one with Lloyds TSB and one with Bibby.We did a quick analysis of the...

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    Even Construction Companies That Don't Need Capital Would Benefit From Payments Against Applications For Payment

    Another querky piece of information that arose from our recent #constructionfinance research survey of 100 construction sector businesses. 35% of the respondents said that they didn't forsee the need to raise any finance over the next 12 months. However just over a third of those (34%) said that their business would benefit from getting payments against uncertified applications for payment! A...

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    Construction Finance Against Invoices Not Applications For Payment

    There has been much focus on construction finance against uncertified applications for payment but in 25% of cases construction businesses just raise straight credit sales invoices rather than applications for payment (according to our recent construction finance sector survey of 100 construction businesses).We didn't find that any of these 25% of construction sector businesses used invoice...

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    Construction Sector Businesses Still Haven't Heard Of Finance Against Uncertified Applications For Payment

    Following our recent #constructionfinance survey of 100 construction sector businesses I have started to analyse the results a little more deeply.Of the total, 75% raise applications for payment (rather than invoices) and so I focused on just this group. Of those that raise applications for payment:...

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    The Reasons Why Only 2% Use Construction Finance

    As part of our recent #constructionfinance survey we asked 100 construction businesses if they needed to raise finance over the next 12 months - 65% said they did. However, we also asked if they used invoice finance or finance against applications for payment (hereafter called construction finance). Only 2% used construction finance so we went on to ask those that didn't use construction finance...

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    Only 19% Of Construction Businesses Have Had An Invoice Finance/Applications Finance Quotation

    Our construction sector finance survey revealed that 65% of construction business (100 surveyed) anticipate the need to raise finance over the next year and only 2% of construction sector businesses (in our survey) used invoice finance/applications for payment finance.We also asked these construction sector businesses if they had ever received a quotation for invoice finance/applications for...

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    65% Of Construction Businesses Need To Raise Finance

    My previous post was that only 2% of construction sector businesses (we surveyed 100 randomly selected #construction businesses) said they used invoice finance or finance against applications for payment.We went on to question them about their future funding requirements and 65% said that they expected to need to raise further finance during the course of the next 12 months!This should present a...

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    Construction Finance - Invoice Finance - Applications For Payment Finance

    Further results from our #constructionfinance research study during which we questioned 100 randomly selected construction businesses about their finance related requirements.We asked them if they used any form of invoice finance or finance against applications for payment and of the 100 businesses interviewed only 2 said that they did use invoice finance or applications for payment finance. We...

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    Businesses Expect 14.6% Turnover Growth During Next 12 Months

    Recent figures showed a GDP (Gross Domestic Product) contraction in Q2 2012 of 0.4% but we wanted to understand the level of confidence that businesses had in future growth potential within the UK.So as part of our recent survey of SME businesses we asked 100 business owners "by what percentage do you expect to grow your business' turnover during the next 12 months". Only a handful within our...

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    Why Do Businesses Think Invoice Finance Is Easier To Get Than Overdraft?

    As you may have seen from my previous posts only 7% of businesses think that it is easier to qualify for invoice finance rather than a bank overdraft. This is a major misunderstanding as invoice finance is often available in cases where an overdraft is not.Of those businesses that said that they thought it would be easier to qualify for invoice finance than overdraft we went on to ask them...

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    20% Think Its Harder To Get Invoice Finance Than Overdraft

    Just to complete the statistics, following on from my previous posts:20% of respondents, in that survey of 100 SME businesses, thought that it would actually be harder to get invoice finance than to get an overdraft! There is a great amount of misunderstanding here as invoice finance is freely available to businesses that would not qualify for an equivalent overdraft in many cases.We asked that...

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    UK Invoice Finance Research Group Breaks 500 Member Mark

    I am pleased to announce that the UK Invoice Finance Research Group, which I manage via Linkedin.com, has broken the 500 member mark with 502 existing members as of yesterday.The group is free to join and discusses research and research related issues relating to the invoice finance industry with a view to trying to encourage the expansion of the UK invoice finance industry. We publish all of our...

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    85% Of Construction Businesses Would Benefit From Immediate Payments Against Uncertified Applications For Payment

    The construction sector is an area that several invoice finance companies now fund and we have successfuly assisted many construction sector businesses find funding. To better understand the sector we have just completed a survey of 100 randomly selected businesses within the construction sector. I will publish the answers to a variety of the questions asked on this blog over the coming weeks.One...

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    Switching From Overdraft to Invoice Finance

    My recent article "How to switch customers from overdraft to invoice finance" has just been published by Commercial Finance Today.The article explains the results of our recent research into the reasons for customers using overdrafts and what customers say is needed in order to entice them to switch from overdraft to invoice finance.If you are interested in switching from overdraft to invoice...

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    UK Invoice Finance Research Group Tops 300 Members

    Good news, the membership of the UK Invoice Finance Research Group (see Linkedin.com) is now 306 members, having broken through the 300 member mark recently.This is something of an achievement when you consider the size and specialist nature of our sector.If you would like to join our free discussion group please follow this link: http://www.linkedin.com/groups?mostPopular=&gid=3323843...

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    Will Invoice Finance Grow In 2012?

    We have posed this question to the UK Invoice Finance Research Group on Linkedin.To give your opinion on whether the UK Invoice Finance market will grow in 2012 please vote...

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    CFT Article Published - Do Clients Want Selective Invoice Finance & Auction Sites?

    My latest article published in Commercial Finance Today - "Do Clients Want Selective Invoice Finance and Auction Sites?"The article explains research findings from research that we have recently conducted with a group of SMEs regarding their views about selective invoice finance and auction sites that can be used to access invoice finance....

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    Invoice Finance Auction Sites For More Competitive Pricing?

    Through our ongoing research we wanted to find out if there was a demand for accessing invoice finance through an online ebay style auction site. Recently there have been some developments in this area with new invoice finance auction sites being launched and as invoice finance brokers we have been asked to introduce business to these auction sites.We therefore consulted a sample of 100 SMEs and...

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    SME Loan & Overdraft Research Published by BDRC Continental

    A huge piece of lending related research, the SME Finance Monitor, amongst 10,118 SMEs has just been published by BDRC Continental. The key findings were:...

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    93% of SMEs Think the UK Government Should Promote Invoice Finance

    Finally we have the results through from our 5th survey group! There was some unsolicited suggestion in one of our previous surveys that the UK government should promote invoice finance and that not all businesses are aware of the benefits of invoice finance. Therefore we specifically asked a sample of 100 randomly selected SMEs (Small and Medium Sized Enterprises) "Should the UK government...

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    Has A Lack Of Bank Lending Created An Opportunity For Invoice Finance?

    Commercial Finance Today have published my latest article "Has A Lack Of Bank Lending Created An Opportunity For Invoice Finance?"...

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    Invoice Finance Research Conclusions So Far | Commercial Finance Today

    My recent article has been published in Commercial Finance Today:Invoice Finance research conclusions so far.It summarises the 9 key conclusions arising from our invoice finance related research activity....

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    Are Banks, Banking Packages & Banking Offers The Key To Growing Invoice Finance?

    Much of our research has shown that invoice finance is not well known within business circles. Some 41% of businesses thought that lack of knowledge/promotion was the key reason for invoice finance not being taken up by more businesses.Our attention turned to what should be done about that. Therefore, we questioned 100 SMEs and asked them the following question: "Our research suggested that...

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    Are Banks Cutting Back On Credit For Business Finance?

    We surveyed 100 SMEs and asked them if they anticipated problems raising business finance during 2011. 59% said they did and we went on to ask the 59% why.The top response, from 39% (23 respondents) of those that anticipated problems raising finance, was that they thought that banks were cutting back on credit.A curious perception as the major banks have been targetted to increase their lending...

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    My Latest Article Published In Commercial Finance Today

    This is a link to my latest article - "What Customers Hate About Invoice Finance" which has been published in Commercial Finance Today the ENewsletter written by Commercial Finance People: What People Hate About Invoice FinanceIt describes the results of our research into customer's "pet hates" about invoice finance but also promotes the view that most of their pet hates are not common across all...

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    What Is Missing From The Invoice Finance Market?

    We questioned 100 SMEs (small and medium sized enterprises) regarding what they thought was missing from the invoice finance market. I have already published some of the results but below is a full list of the responses that were received:...

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    Invoice Finance Not Promoted Enough

    When we questioned 100 SMEs about what was missing from the invoice finance market 14% said "advertising" and 12% said "general awareness of what invoice finance is".In total these reponses represent 26% of all respondents to our market research survey that are raising the issue of the lack of promotion of invoice finance as a significant market gap. This is an opportunity to be addressed by...

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    28% Of Businesses Want Instant Online Set Up & Approval For Invoice Finance

    In our recent poll of 100 SME businesses, we asked them what they thought was missing from the invoice finance market. After "flexibility" of funding - which was the most popular response, 28% of respondents said they wanted "instant online set up & approval" for invoice finance.This reflects the growing demand we have seen for online access to financial products as businesses have become more...

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    Invoice Finance 19% Overpriced On Average

    My previous post revealed that 68% of SMEs we spoke to said that they thought that invoice finance was overpriced. We asked them by how much, and these were their replies:? 2% of respondents felt it was overpriced by 5%? 10% of respondents felt it was overpriced by 10%? 19% of respondents felt it was overpriced by 20%? 46% of respondents felt it was overpriced by 25%? 2% of respondents felt it...

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    Customer Choices Affect Pricing Expectations

    Our recent research has addressed what SMEs would expect to pay for invoice finance and we also asked them if they would prefer to use a bank owned or an independent invoice finance company.We found an interesting quirk in the response data. We compared those that said they would prefer to use a bank owned invoice financing company with those that said they would opt for an independently owned...

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    Why Do 56% of SMEs Prefer An Independent Invoice Finance Company?

    In our survey 56% of SMEs questionned said that they would prefer to use an independent invoice finance company rather than one owned by a bank. 41% of those respondents said the reason for their choice was due to a desire for "personal service"....

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    73% Of SMEs That Prefer A Bank Do So Because Its A Well Known Name

    In our survey of 100 SMEs only 33% said they would prefer to use a bank owned invoice finance company. Of that 33% - 73% of them, nearly three quarters, said that the reason for their preference was that the "bank was a well known name"....

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    56% of SMEs Prefer An Independent Invoice Finance Company

    We asked 100 SMEs whether they would prefer a bank owned invoice finance company or an independent invoice finance company.The results were as follows:I will be looking at the reasons why over the next few days....

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    Average Business Loan Represents Just 4.7% Of Sales Ledger

    In our SME survey we asked SME businesses if they had business loans and if so what percentage it represented of their outstanding sales ledger. Of the 7% that had a business loan, the average value represented only 4.7% of their outstanding sales ledger.This figure is much lower than that for invoice finance, which can be an alternative to getting a business loan. Recent figures from the ABFA...

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    Banks Not Increasing Overdrafts - Lending Survey Results

    We asked 100 SMEs if their overdraft had increased, decreased or stayed the same over the course of the last year.Not a single respondent reported an increase in their overdraft over the last year, more evidence that the banks are not increasing overdraft lending to SMEs....

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    Article Published The 8 Most Well Known Invoice Finance Companies

    Commercial Finance Today have just published my recent article: The 8 Most Well Known Invoice Finance Companies....

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    100% of Businesses Surveyed Can't Name the Invoice Finance Industry Body

    As part of our latest SME survey we asked 100 SME businesses if they could name the industry body for invoice finance.Not a single respondent was able to give the name!The ABFA (Asset Based Finance Association) is the main industry body for invoice finance and these latest results highlight that the profile of the ABFA is very low, reflecting the generally low awareness of invoice finance amongst...

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    Linkedin UK Invoice Finance Research Group Link

    This link should take you to the page where you can join the UK Invoice Finance Research Group on Linkedin: http://www.linkedin.com/groups?mostPopular=&gid=3323843You will need to join Linkedin to join the group but all our research results are being published to that group....

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    Finance Cost Is The Biggest Issue That Is Being Addressed By Some Invoice Finance Companies

    The research that we have published in the past demonstrated that 41% of SMEs thought that cost was the biggest reason for businesses not taking up invoice finance. Our research has also revealed that 100% of SMEs think that the availability of business finance has reduced over the last year and 86% also believe that the cost has increased over the same period.This may be true generally but there...

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    UK Invoice Finance Research Group Launched On Linkedin

    Last night I created a group on Linkedin called "UK Invoice Finance Research" group which already has 22 new members! The purpose of the group is to share research findings relevant to invoice discounting in order to aid the expansion of the market.Initially I will update it with some of the findings that I have posted to this blog but we are constantly conducting new research so that will also...

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    Newsletter Published

    The July 2010 newsletter has now been published.This issue includes articles about:...

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    Cash Crunch - Only 7% Of SME Businesses Face A Lack Of Credit

    Contrary to popular opinion, our recent research survey found that only 7% of SME businesses questioned stated that a "lack of credit" was the biggest issue facing their business over the next year i.e. an inability to get credit from suppliers and/or financiers.71% were concerned with cash or cash flow related issues and 22% were concerned about the lack of sales, but lack of credit was far less...

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    Lack Of Sales Is A Big Issue For SME Businesses

    The joint second biggest issue facing SME businesses over the course of the next year was the "lack of sales".This is interesting as with only 22% of respondents stating "lack of sales" as their biggest issue it ranks some way behind the 71% of respondents that stated a cash or cash flow related issue as being their biggest forthcoming issue.Whilst finding sales is obviously an issue, financing...

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    49% Of SME Businesses Expect To Have Insufficient Cash

    In our recent research survey, 49% of the SME businesses that were interviewed said that they expected the biggest challenge facing them this year to be having insufficient cash.This should present a huge opportunity for the invoice finance industry - the need for cash is apparently the biggest issue facing small and medium sized businesses which confirms there is a need for the products that...

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    The Biggest Challenge Facing Businesses This Year

    We recently conducted a poll of 100 SME businesses and one of the questions we asked them was to name the biggest challenge that is facing their business over the course of the next year.The research results were interesting and were published over the next few days on this blog.-----------------------------------------------------These are links to the posts relating to the results of that...

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    Article Published In Commercial Finance Today By Commercial Finance People

    My thanks to Prue Heron at Commercial Finance People for her kind invitation to publish my article "Why Don't More Businesses Use Invoice Finance" in their monthly enewsletter - Commercial Finance Today.Commercial Finance Today is compiled by Commercial Finance People, a long established recruitment consultancy specialising in the Invoice Finance/ABL, Banking, Leasing/Asset Finance and...

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    Is Only One Factoring Company Marketing & Advertising?

    Yesterday I posted that 80% of SMEs in our recent invoice finance survey said that they had not seen any advertising whatsoever for invoice finance. This lead us to question the remaining 20% about what they had seen.In all cases, the only advertising they said they had seen was an information pack that was sent to them by one of the invoice finance arms of a single major high street clearing...

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    42% Of SMEs Can't Name Any Invoice Finance Companies

    As part of our recent invoice finance related survey we asked 100 SME businesses to tell us the first invoice finance companies that came into their mind.Our expectations were that their answers would reflect the handful of proactive invoice finance companies that are making a good job of promoting themselves. However, some aspects of the resulting answers were quite shocking - in particular the...

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    SMEs Dramatically Over Estimate The Number Of Invoice Finance Users

    Our research amongst SMEs also revealed that 49% of those SME businesses we questioned dramatically over estimated the proportion of UK businesses that use invoice finance, when the actual number is very low, in part due to poor promotion of these cash flow products by the industry.In fact the number of UK businesses using invoice finance is less than 1% of the total number and we have some more...

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    Are UK Businesses Being Over Optimistic?

    Are UK businesses being over optimistic about the UK economy?We recently published results of our market research survey of 100 SMEs that 73% of SMEs thought that the UK economy would improve over the course of 2010. 17% thought it would stay the same and only 10% thought it would decline.The results are certainly in keeping with the prevailing opinions on various newsites and blogs around the...

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    Business Climate & Invoice Finance Market Survey Results

    The first question we asked 100 SME's was "How do you expect the economic conditions in the UK to change over the course of 2010?".73% of respondents expected economic conditions in the UK to improve over the course of 2010....

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    UK Business Conditions Survey

    It would be much appreciated if you would complete our 10 question multiple choice survey about current UK Business Conditions, the results of which will be published on the blog and in future newsletters.Just visit: http://www.surveymonkey.com/s/88QT62FThanks...

 

 

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