Home > Uncategorized > The invoice financing market. An update

The invoice financing market. An update

As many of you will know, I extensively broker invoice financing arrangements and a key to success is knowing who is doing what as well as who is hungry and who is pulling up the drawbridge. Beyond that you have to deal with the quirks of the underwriters and they certainly do vary and baffle at times

Can i give you a definitive picture? No. No broker can. With over 40 active lenders that would be impossible but I do pride myself in keeping in close touch with virtually all the players

Naturally enough I am not going to give away details but here is an outline of a few trends I have spotted

One major bank is still treating some clients in a baffling manner. They seem to have little appetite for support even towards well established and financially sound SMEs. However one other major player has awoken from a seeming slumber and is is very hungry for new business. Their rates are very competitive indeed

Another previously significant player barely seems interested in new proposals and finds it difficult to even return emails whilst another is attempting to transform a slightly difficult image.

The obsession with personal guarantees is quietly being set aside by a couple of lenders. Quite right too and in my eyes this adds significantly to their appeal. Many borrowers will pay a slightly higher rate to avoid these (often unnecessary) demands and rightly so. Lenders simply don’t get the emotional impact of PGs

It is no secret that Metro bank have taken over SME finance and I will be keeping a close eye on developments there. The peer to peer lenders such as Marketinvoice are still aggressive in the market and have adapted their model in response to clients requirements. Good thing too

The single invoice discounting market is still short of players but as one lender I know very well has found, it is a significantly growing area

Interestingly the leper sector, construction, is being actively courted by a small number of lenders now. One in particular is very keen

As for the governments “supply chain finance” which was supposed to counter the need for external financing (see previous post), there is nothing to report.

That is as much as I prepared to tell you but, of course,always feel free to contact me 

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