Invoice Finance Versus Payday Loans
Invoice finance still has a very low awareness level amongst businesses that could benefit from this little known form or business funding. In our recent article we showed how the awareness of invoice finance related advertising was far lower than that for crowd funding.
Payday Loans Versus Invoice Finance
However, we also asked our sample if they had seen any advertising for payday loans (which seem to be endlessly plugged on daytime TV by the likes of Wonga and QuickQuid). The result was that an astounding 100% of the businesses, that we canvassed, said that they had seen adverts for payday loans - that's every single respondent!
Crowdfunding And Invoice Finance
The stark contrast is with awareness of invoice finance related advertising (factoring and invoice discounting). Only 14% had seen any advertising at all over the last year, the level of awareness of payday loans is over 7 times higher (crowdfunding awareness e.g. companies like FundingCircle and CrowdCube, was 6.5 times higher for those that will argue that payday loans are in a different market space!).
Factoring & Invoice Discounting Needs A Presence
The factoring and invoice discounting companies need to have a greater presence within the funding scene. In another aricle we discussed some of the benefits of invoice finance, over repayable forms of finance such as loans and crowdfunding, hence invoice finance is an option that needs to be understood by businesses before they go down the more obvious routes.
Source: FundInvoice IF & Crowdfunding Advertising and Promotion Survey - January 2016 (100 respondents, all existing invoice finance users of a variety of different invoice finance companies)