Factoring and Invoice Discounting industry trends in Australia
Factoring and Invoice Discounting were introduced to Australia in 1963. For 30 years the product was provided by finance companies with a primary emphasis on factoring. In the past decade this has changed radically and the change is continuing. Factoring and Invoice Discounting is a highly dynamic segment in Australia, which is continually evolving under competitive pressure. During the 1970’s and 1980’s there was strong focus on factoring with the key sectors availing themselves of the product being manufacturers, wholesalers and car repair firms. This type of finance was highly attractive to the small- medium-sized enterprise (SME) market segment. The key benefits were:
Sourcing working capital finance where it could not be obtained from a bank due to lack of property security (or poor credit standing).
Outsourcing the accounting and collection functions of the receivables management.
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