The industry provides businesses with liquidity by allowing them to use their invoices and other debtor balances to get short-term finance. Operators also purchase accounts receivable and unpaid invoices at a discount in return for immediate receipt of money. Industry revenue is expected to grow at a compound annual rate of 4.9% over the five years through 2015-16. However, the industry has expanded from a relatively depressed revenue base due to the sharp fall suffered prior to the start of the period when the financial crisis caused credit markets to freeze and demand for short-term finance fell considerably.
Companies in this industry specialise in debt financing and invoice discounting. Factoring involves a company selling its accounts receivable to a third party as a means of accessing cash to finance further business activity without having to wait for their debtors to pay them.
The report covers the scope, size, disposition and growth of the industry including the key sensitivities and success factors. Also included are five year industry forecast, growth rates and an analysis of the industry key players and their market shares.