Factoring 'spreading to new sectors'

29/02/2008

Factoring services are increasingly being offered to businesses in a wider range of sectors of the economy, it has been suggested.

According to Brian Solomon, editor of online news provider TMCnet, companies that have previously been unable to access factoring solutions are finding new opportunities to fund their operations through this form of financing.

Invoice factoring and other forms of debtor finance can be particularly beneficial for businesses that are growing well but have found it difficult to access credit through more traditional sources, Mr Solomon went on.

Writing recently, he explained: "Historically, factoring has been heavily used in some industries, such as the garment industry and less in others.

"Today, however, entrepreneurial factoring companies are willing to buy creditworthy receivables from just about any industry."

A report from Alliance & Leicester recently claimed that many of the UK's small and medium-sized enterprises are uncertain about how they will be impacted by proposed changes to the tax regime.