Third quarter figures released today by the FDA shows invoice discounting growing in popularity in comparison to traditional overdraft lending
More and more businesses are turning to invoice discounting for funding instead of traditional bank overdrafts, finds the latest figures from the FDA. A significant 26 per cent growth was recorded compared with a year earlier - further demonstrating that invoice discounting is continuing to increase in popularity amongst SMEs and corporates.
Overdraft lending to small businesses continues to decline - down 68 per cent in the last ten years to Ј10.8billion in March 2002, according to the British Bankers’ Association.
The figures also demonstrated continued growth across the sector, with businesses using factoring & invoice discounting growing 10 per cent from a year earlier to 28,091; funds provided to clients increasing to Ј7.4billion compared with Ј6.9billion in September 2001.
