Appetite for factoring 'increasing'

06/02/2008

The appetite among British businesses for factoring and invoice financing solutions is increasing, according to one expert on the sector.

Alison Small, managing director of City Invoice Finance, has claimed that the turmoil in financial markets witnessed in recent months has led an increasing number of firms to seek ways to fund their operations outside of traditional banking structures.

Ms Small told the Manchester Evening News that businesses in the north-west of England will need to adapt to the worsening economic climate and start using more creative forms of financing.

"Although clearing banks have tightened their lending criteria this is only increasing appetite for alternative forms of funding, such as factoring, invoice discounting and asset-based lending to help facilitate growth," she said.

Ms Small went on to suggest that the flexibility of factoring and invoice discounting as a method of financing will also increase their popularity in months to come.

Meanwhile, bosses at the software development firm 3i Infotech asserted recently that markets for factoring services are set for significant growth across Europe.