Some recent survey data from the Asset-Based Finance Association (ABFA) has shown that companies which borrow money against their invoices are not accessing all the funding that is available to them read more
According to ABFA, banks have been marketing such loan facilities to businesses in the past year. Invoice financing has historically been very popular in sectors such as recruitment, where companies have no assets to borrow against, but it has been rejected by many others because of the high charges.
However, as we discussed in our recent article on dynamic discounting and reverse factoring, having close control and visibility over AP functions can make this a much more viable method of working capital harder, and minimising costs and charges. Perhaps this could be the key to the wider adoption of factoring? Read the article