Invoice finance gaining popularity as demand for credit returns
Irish companies are increasingly turning to invoice financing to fund growth, with nearly €1bn advanced by mid-year from non-bank lenders who extend credit based on customer orders.
Firms utilised €971m of funding in the second quarter, up from €856m at the end of Q4 2020, an increase of 13pc, according to the latest figures from the Irish Asset and Invoice Finance Association (IAIFA).
The industry group said the rise showed that more and more Irish businesses, particularly SMEs, were using invoice finance to fund greater turnover and growth following the easing of Covid restrictions.
“Our latest figures highlight a significantly increased level of sales from Irish SMEs, across multiple sectors, that have benefited from innovative invoice and asset-based lending solutions over the past few months,” said David Avery, chair of the IAIFA.
“Not surprisingly, given the times we have just come through, many business owners do not want to take on additional debt in a bid to fund cash flow or finance growth plans. As a result, many are now opting to utilise invoice finance solutions which is a debt-free funding option.”
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Source: Invoice finance gaining popularity as demand for credit returns – Independent.ie