As small and medium sized businesses continue to grapple with a challenging cash flow environment they are increasingly turning to invoice finance as a solution.
According to the Institute for Factors and Discounters, industry turnover in the three months to March 2011 increased by 6.6% compared with the same period the year before.
Total receivables finance provided to customers March to March was a whopping $59.5 billion.
Invoice finance, or debtor finance as it is also known, is one of the fastest growing areas of business credit.
While most of the 5,000 Australian businesses using the services of factors or invoice discounters are involved in long-term arrangements, an increasing number are turning to single invoice finance as an alternative because of its flexibility and simplicity.