FEATURE: RAISING FINANCE


Kate Sharp, chief executive of the ABFA, said: “With the wider economy continuing to struggle and access to finance generally tight, it is heartening that the invoice finance sector has continued to be able to provide for British companies. “In general companies using invoice finance are enjoying both a


strong uplift in sales and have sufficient funds to enable them to continue growing and trading successfully, which is exactly what our economy needs in these economically challenging times.” These recent figures echo the findings of the ABFA’s Economic


Report, which found that total advances from the trade body’s members had showed strong year on year growth of 12 per cent. The report also highlighted that export and import factoring have


both grown substantially, enjoying a year on year rise in client sales of 48 per cent and 47 per cent respectively. This leap in demand for import and export factoring indicates that while the UK market remains sluggish, clients are looking to customers outside of the UK to buy their products, and are choosing this type of finance to help facilitate overseas trade. Ms Sharp said: "The figures in our new economic report indicate


growing business confidence amongst invoice finance clients, both SMEs and larger firms. This contrasts markedly with the general negative sentiment concerning the state of the wider UK economy and a general contraction in the stock of lending. Firms using invoice finance are seeing rising sales and are continuing to have access to an ample supply of finance. “With total client numbers rising, the invoice finance sector is


providing much needed finance to many UK businesses and is, and will continue to be, a significant contributor to supporting the wider economic recovery."


UK leads Europe


UK firms that use invoice finance have the highest turnover in Europe, according to new figures. The data shows the amount of


turnover by country from companies utilising invoice finance in Europe, with the UK clearly out in front with turnover


figures of €122bn. The next highest is France with €84bn, closely


followed by Italy with €82bn. Surprisingly, Europe's largest economy,


Germany, is only fourth with €75bn. The figures also include the


percentage GDP penetration for companies using invoice finance, with the UK in second place with 14 per cent of GDP, compared to first placed Portugal with 17 per cent and third ranked Ireland with 11%. Kate Sharp, ABFA chief executive, commented: "These


figures confirm the central part that invoice finance plays in the funding of UK and Irish businesses. It is also interesting to see that nearly every European country saw clients which use invoice finance record double digit turnover growth compared to last year. This demonstrates that companies which use this type of finance are successfully growing and trading, which in the current economic climate is extremely positive."


ADVERTISEMENT FEATURE


Invoice finance - a flexible form of funding for SMEs


By Sharon Wiltshire, managing director for Bibby Financial Services in the Midlands


With the West Midlands economy depending on small and medium-sized enterprises (SMEs) to create wealth and jobs, Bibby Financial Services, the UK’s largest independent invoice finance provider, is committed to supporting their survival and growth. Despite tough trading conditions, our latest research shows a third of businesses in the West Midlands are doing well or are at least hopeful for the future. However, 40 per cent say things are so tough they are only just surviving. Whatever position a firm finds itself in, a reliable and on-going


source of finance is essential, and as invoice finance grows in popularity as a flexible form of funding for SMEs, we are pleased to offer our tailored solutions to specific industry sectors. Such services extend to the recruitment and construction sectors


where businesses have specific funding requirements. We also help businesses maximise the opportunities presented by international markets with Export Factoring, a specialist form of invoice finance which has been developed together with a Trade Finance service for SMEs wanting to fund their growth overseas. Bibby Financial Services currently provides cash flow funding for nearly 4,000 businesses nationwide and we will continue to help West Midlands firms maximise their potential.


To find out more about our invoice finance solutions please call our Birmingham office on 0121 232 4675 quoting BC01.


FEBRUARY 2012 CHAMBERLINK 33


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