With numerous businesses successfully growing thanks to the help of Invoice Discounting, could it be time for your company to convert? There are many benefits that come with this flexible finance solution, from being able to better manage your cash flow, to improving your working capital.
We’ve taken a look at the facts and figures from the Debtor & Invoice Finance Association September Quarter and have put together a summary to show you how many businesses are moving towards Invoice Discounting and the turnover figures.
Consistently on the rise
The total debtor financing turnover in the September 2015 quarter was $15.8 billion – an increase of 1.8% on the September 2014 quarter.
Invoice discounting turnover was $14.5 billion and factoring turnover was $1.3 billion. Total turnover for the 12 months to the end of September 2015 was $64.2 billion – an increase of 3.4% over the 12 months to the end of September 2014.
What are the stats in your state?
We’ve taken a look at how the statistics of turnover differ from state to state – at current NSW & ACT have the highest factoring and discounting turnover, at 38% in the September quarter. Victoria closely follows with 27% and Queensland at 17%. Western Australia also had an 11% turnover.
Is your industry already making the most of Invoice Discounting?
The Wholesale Trade industry had the highest percentage of receivables in debtor and invoice finance, with 38% for the September Quarter, followed by Manufacturing at 20%. Property & Business Services and Labour Hire also have a high percentage of receivables.
The statistics for Wholesale Trade are very similar for the percentage of discounting turnover, as to the percentage of receivables, again followed by Manufacturing at 19%, then Labour Hire and Property & Business Services at 10%.
When it came to the percentage of Factoring Turnover, Labour Hire has taken the lead at 27%, next to Wholesale Trade at 23%. Transport & Storage and Manufacturing also ranked highly in Factoring Turnover.
Facts about Key Factors
Key Factors offers a number of tailored cash flow solutions to suit each individual business. We can bridge the gap of slow payments, help you get on top of ATO obligations, and help your business reach its potential. Plus, with Key Factors, there are no long-term contracts, no minimum volume and no annual charges.
Read the report in full
To read the full DIFA Industry Data document for the September 2015 quarter, visit the DIFA website.
Still have a few questions?
The team at Key Factors will be happy to help explain anything further, or discuss how your company can get started. Simply give us a call on 1300 884 100, or fill out a short enquiry form today.