Quarterly figures released today by the Factors and Invoice Discounters Association (FDA) have shown how the clients of FDA members are being protected from the impact of customer bad debts. There was a staggering 93% increase in credit protection payments to clients compared with last year. This figure demonstrates that significantly more small to mid market businesses are drawing on credit protection to avoid the crippling effects of bad debt.
The FDA figures also demonstrate that the asset-based finance sector as a whole is beginning to experience strong growth, with increased funds provided to clients, up by 13% to Ј6.9bn compared with a year earlier. Also the demand for international services continued with export invoice discounting showing the greatest increase in client sales, up 25% from September last year.