Cash flow is an issue for many small businesses in the UK which has led to the growth of a booming invoice finance market.
“The proportion of small firms seeking external finance that apply for invoice finance has risen to around one in three this quarter – up from one in seven at this time two years ago,” says Federation of Small Businesses chairman Mike Cherry.
This article provides you with more insights on the rise and importance of invoice financing in the UK industry, where small and medium sized businesses make up 99.9% of all private sector firms.
The future of invoice financing may be influenced by the growing demand of borrowers. Industry experts say that rates are becoming less important to SME borrowers, who are placing more emphasis on flexibility and long term borrower-lender partnerships.
The potential for the P2P invoice finance sector is enormous with many firms already surpassing their own funding goals. The demand for invoice finance is going to stay and P2P lenders are a crucial part of the solution.
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