Looking back over two recent surveys one of 100 new start businesses and our most recent survey of 100 high growth businesses (20%+ pa) and there are a number of interesting similarities. Both segments, new starts and high growth companies are ideal for invoice finance funding such as factoring & invoice discounting but in both cases the vast majority of companies don’t find their way to invoice finance and the reasons they give are quite similar:
| Why 96% of New Starts Didn’t Consider Invoice Finance |
Why 84% of High Growth Companies Didn?t Consider Invoice Finance |
|
| Didn?t think it was an option | 39% | 34% |
| Hadn’t heard of it | 25% | 24% |
| Heard it was expensive | 23% | 12% |
| Wasn?t Offered | 14% | 27% |
| Though it was last resort for failing companies | 0% | 4% |
The results above show that the issues are common between the two segments, new starts and high growth. Both are ideally suited to invoice finance as a method of funding their business but in both cases the majority either thought it wasn’t an option for them (for a variety of reasons see my previous posts), hadn’t heard of it or said that it wasn’t offered to them as a product option.
There is a huge opportunity here for the invoice finance industry.