The Reasons Non-Bank Introduced Businesses Picked Their Invoice Finance Facility
In my previous article "How Businesses Find Their Way To Invoice Finance" we identified that 49% of our sample of existing invoice finance users found their way to the products through a route other than being recommended by their bank. We analysed the reasons they gave for why they picked their invoice finance facility.
Their reasons they gave were as follows:
- 25% - Flexible growth funding (related reasons)
- 21% - Collections
- 16% - Improve cash flow
- 6% - Cheapest/best deal
- 5% - Cost effective/value for money
- 4% - Free up time
- 4% - Easy to use
- 4% - Best for small businesses
- 3% - Cost savings
- 3% - Accountant recommended
- 1% - Used my bank
- 1% - Top online
- 1% - Only provider of that facility
- 1% - Most suited when looked online
- 1% - Hassle free
- 1% - Friendly sales person
- 1% - Don't know
- 1% - Declined for overdraft
It is interesting that only one of this sub-set said that they "used their bank". This particular respondent said that they had been recommended to use invoice finance by their accountant and then choose to use their bank as their provider. This is a very obvious difference from the segment that were bank introduced (overall analysis of the answers to this question).
Source: Study of 100 Invoice Finance Users February 2015 (note: some respondents may have given multiple answers to this question).