New research from Demica indicates invoice factoring is becoming an important source of working capital funding. As a result of lending conditions and credit availability remaining tight in Europe.
This is the first time an analysis of this kind of factoring has taken place. Particularly as part of the wider aggregated finance market: factoring, discounting, trade receivables securitisation, supply chain finance and other invoice-based finance techniques.
Demica’s research shows the aggregated European invoice finance market, including factoring, estimates at €1090 billion (£892 billion) in 2011. This is compared to €991 billion (£811 billion) in 2010 and €844 billion (£690 billion) in 2009. A compound annual growth rate of over 10 per cent.