Invoice Discounting - The International Opportunity?
Why is there an invoice finance opportunity? The invoice finance world has typically focussed on factoring as the way forward. While there are differences from one country to another, financiers have always found a mechanism that allows them to gain title to an invoice and then collect versus the debtor. At the same time, smaller companies, while relying upon both bank and non-bank sources of working capital finance to support their business operations, have found factoring to be an increasingly important source of liquidity . Factoring is effective; typically, its availability grows with the business and it provides confidence in the identity and credibility of business partners.
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Why is there an invoice finance opportunity? The invoice finance world has typically focussed on factoring as the way forward. While there are differences from one country to another, financiers have always found a mechanism that allows them to gain title to an invoice and then collect versus the debtor. At the same time, smaller companies, while relying upon both bank and non-bank sources of working capital finance to support their business operations, have found factoring to be an increasingly important source of liquidity . Factoring is effective; typically, its availability grows with the business and it provides confidence in the identity and credibility of business partners.