- 24 Sep
Concentration Of Fast Growing Businesses Using Invoice Finance 14 Times Higher
The concentration of fast growing businesses (20%+ turnover growth pa) using invoice finance was found to be approximately 14 times higher than the general average, in our High Growth Survey 2013. The survey found that 12% of high growth businesses were using invoice finance against c. 0.86% of businesses generally.
This reflects the advantages of using invoice finance when you are undergoing fast growth. The finance is linked to the invoices that you raise i.e. as you raise more and more invoices so the level of funding grows in line with your turnover. This is different from traditional forms of finance such as bank overdrafts and bank loans which do not grow without applying for an increase. Factoring and invoice discounting are great ways of funding businesses that are over trading.