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The Current market

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The invoice finance market is constantly changing with more and more products becoming available. New entrants are appearing on a seemingly weekly basis. Its a full time job keeping up with developments but that in itself is essential if you are going to find the best solution for your client.

This year I have managed financing for a whole range of businesses including oil brokering, retail, haulage, IT, security, promotional materials, publishing, media and so on. Working closely with these clients and the financiers continues to give me a good insight.

Lenders will never advertise a lack of appetite or a change in strategy. The brokers skill is reading the signals. Naturally | am not going to specify partilcular lenders but here are some observations and predictions

1. Within the last few months two reasonably significant lenders have certainly pulled away from new business. In both cases I was somewhat surprised. In neither case can I give a reason why and in truth similar sized lenders remain hungry for new business.

2. PTP continues to grow and there are a number of entrants looking to take on the clear market leader. However most of the players in this market are still very reliant on outside investment to continue and there will be casualties.

3. The high charging more traditional single invoice providers will struggle in the face of more competitive PTP lenders and we will see further disappearances from this sector

4. The established lenders are finally getting to grips with single debtor or single invoice lending. Just this week we arranged a proposal from a lender to my client which would not have been considered in previous times

5. According to a number of my sources, two major banks have come close to withdrawing from this market in the past year and one is still predicted to do so. My belief is that they will withdraw from a certain segment of the market than the whole

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